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THE COMPLETE

COST-KEEPER

Some Original Systems of

SHOP COST-KEEPING

FACTORY ACCOUNTING

TOGETHER WITH

AN EXPOSITION OF THE ADVANTAGES OF AC-
COUNT KEEPING BY MEANS OF CARDS INSTEAD
OF BOOKS, AND A DESCRIPTION OF VARIOUS
MECHANICAL AIDS TO FACTORY ACCOUNTING

Now compiled for the first time by

HORACE LUCIAN ARNOLD

{Henry Roland)

^pol"!

NEW YORK AND LONDON

IHE ENGINEERING MAGAZINE PRESS

1907

JOHN R. DUNLAP

CONTENTS.

i. — Preface v

Showing the present conditions which make this book
useful.

II. — The Necessity for the Factory i

An abstract of the succeeding section, which is entitled

III. — Manufactures and Commerce 2

Showing that employment as wage-earners in the ser-
vice of others is the inevitable form of existence for
the larger portion of mankind, and deducing the con-
clusion that advanced Factory Management is one of
the principal factors in the advancement of humanity
at large.

IV. — A Collective Production Order System 16

A simple cost-finding system, using only a single card,
and found entirely satisfactory in the small establish-
ment where it is employed.

V. — A Simple System for Duplicate Work 37

Using only five forms, and adapted for a small esta-
blishment in which a standard product in a limited
number of sizes is made.

VI. — A General System for a Medium-size Works. . . 52
Applied to the accounting for a special product, in-
cluding repairs as well as original work, and giving
very accurate results.

IV CONTENTS.

VII. — A Complete System for a Geneil\l Iron Works. . 83
Used with great success in a works employing 300
men in general machine construction, including ma-
chine and pattern shops, foundry, smithy, and boiler
shop.

VIII. — An Elaborate System for a Highly Organized Es-

LISHMENT 196

Including in-and-outdoor accounting for every depart-
ment of construction, erection, and operation. This is
exclusively a card system, and the costs are obtained
in minute detail and with much accuracy, and is fully
detailed by the originator for this work, including re-
productions of all forms.

IX. — A Special Card System for an Electrical Works . 292
The work of a professional expert in factory organi-
zation, and a model of simplicity and effectiveness.
This system is rnliy detailed by its originator and is
applicable to many situations.

X. — The Card System of Accounting 345

A general consideration of the economies and advan-
tages arising from the use of cards instead af books.

XI. — General Expense Accounts 353

Including the important subjects of Inventory, Depre-
ciation, and the distribution of General Expense.

XII. — Mechanical Aids to Accounting 363

A brief description of such mechanical appliances as
have been found useful and acceptable in connection
with factory-accounting and cost-keeping.

PREFACE.

Am I obtaining my true costs? Am I obtaining my costs
in the best form? Am I exactly informed as to all separate ex-
pense items? Do I pay too much for cost-keeping, or shall I
pay more and obtain my costs more in detail ? Are there known
cost-keeping systems so much better than mine that I should
change my present methods?

These are questions which many shop managers ask them-
selves, because they are informed as to the operation and capa-
bilities of their individ\ial cost-keeping systems only.

Until very lately all, or nearly all, the cost-keeping systems
in use in American shops were original creations, produced by
the establishments using them.

In almost all cases the methods employed were kept secret,
hence comparisons have been, until now, impossible.

Precisely as the man who knows but one language may be
truly said to know none, so a manager who knows only his own
cost-keeping system, is incapable of fully understanding even that
one system.

Values can be fixed only by comparison. To know any one
thing fully and entirely, many other similar and related things
must be known.

This book is designed to give such an exhibition of widely
differing systems of cost-keeping now in satisfactory use, as will
afford any manager, although not himself an accountant, the
knowledge needful to an intelligent comparison between his own
methods, and cost-keeping methods in general.

Little can be gained from a mere theoretical presentation of
the essentials of a good cost-keeping system, but there is much
to be gained by an acquaintance with various different cost-keep-
ing systems which arc practical successes, inasmuch as they arc in
regular use by successful manufacturing establishments.

vi PREFACE.

Hence this book presents first, different original cost-keeping
systems, varying in complexity from one so simple that the entire
history of each production order is recorded on a single printed
form, up to some of the most elaborate methods known, by which
any desired degree of minuteness in subdivision of accounting
can be obtained.

These various systems of Shop Cost-Keeping, or Factory
Accounting, are so fully and completely described and illustrated
as to enable any manager, if he pleases, to install and operate them
in his own works, even though he may not be an accountant, with
entire success. In all cases every blank form is given in full and
has its actual sizes specified, together with a full exposition of
its own individual office and its relation to and influence upon
the operation of the other forms used, if such there be.

Every step in the use of these several systems is minutely de-
tailed, and when the factory production is separated from the
purely commercial operation of disposing of the factory product,
the commercial books are also described, and in all cases the num-
ber of men at work and the number and class of book-keepers,
clerks, messengers, time takers and so on, employed in cost-
accounting is given, so that any manager can tell about what he
may expect the use of a similar system to cost in his own estab-
lishment.

The final cost-keeping system here presented is supplied by
Mr. James Newton Gunn, of Boston, who is constantly engaged
in the installation of improved systems of cost-keeping in the
foremost American establishments, and although given as a sup-
posititious system, is practically a late installation of Mr. Gunn's
in one of the the larger American electrical shops, differing, how-
ever, in some points which are deemed of importance by its
originator.

Book-keeping can be practiced without books, and account-
ing can be performed, and is performed, in some large establish-
ments, without accountants, after a suitable accounting system has
been fully established.

Inscribed cards can be made to take the place of book entries,
and these cards have the vast advantage of serving different
offices as they pass through the works, thus saving many tran-
scriptions.

PREFACE,

The use of cards is fully explained in the article on the topic,
which is furnished expressly for this book by one of the highest
authorities on the subject.

Many mechanical aids to factory accounting are in use, some
known to the public, and some unknown outside of the establish-
ments where they originated. All such devices known to the
compiler of this volume are herein fully described and illustrated,
including different forms of mechanical time recorders, dating
clock stamps, program clocks, and other mechanical aids in de-
termining shop chronology.

Various forms of computing machines are also illustrated
and described, some of them being great labor savers, although as
yet these ingenious and highly efficient devices are not very much
used.

In brief, it is intended that this book shall furnish to the fac-
tory manager a full exhibit of the latest and most advanced
methods and appliances used in shop cost-keeping, and thus aid,
in some degree at least, in the advance of America toward its
ultimate position among the leading manufacturing nations of the
world.

THE NECESSITY FOR THE FACTORY.

While this book is made up almost wholly of cost-keeping
systems which are in successful use in prosperous manufactur-
ing establishments, and is hence exclusively practical in its char-
acter, offering no theories or speculations whatever, but giving
only what experience has fully proved to be valuable, the author
has thought it proper to show, under the heading "Manufactures
and Commerce," why and how it comes that the factory must
exist, and the factory workman or shop hand must unavoidably
form so large and numerically important a part of the population
of all civilized countries.

At first sight, the factory or workshop employing a large
number of workmen under one management, does not seem to
be an absolute necessity. Every man is free to choose his own
line of work, and many persons, seeing a great number of work-
men giving their whole lives to the enrichment of successful fac-
tory owners, while the workmen themselves work hard and fare
but poorly, and are seldom able to save any considerable part of
their wages, and often end an industrious life in poverty, are led
to believe that the factory is not a necessity, and is not a benefit
to mankind at large. These persons, seeing all of the hardships
of the life of factory workers, often form and express the opinion
that the highest welfare of the human race demands a return to
the more simple lives of former days, when a much larger pro-
portion of the population lived on farms, and plowed and sowed
and reaped, and spun and wove wool and flax, and were compara-
tively independent of employers, the factory having hardly begun
to exist.

Because many persons entertain these erroneous convictions
concerning the best disposition which workers can make of their
labor, ''Manufactures and Commerce," which is a brief but com-
prehensive exposition of industrial economics, is given here, al-
though it forms no part of actual factory accounting, and need
not be read by those who do not care for those underlying and
often not plainly perceptible motives and influences, which arc

2 THE COMPLETE COST-KEEPER.

nevertheless all powerful in their action, and being all powerful
must forever direct general conduct of human affairs.

Such readers can pass directly to the first of the detailed
systems given, although the author is confident that many, very
many, factory managers are deeply interested in all that concerns
the fullest understanding of the factory, considered in its broad
relations to human effort, and are earnest in their endeavors to
add to the lives of their workmen, and hence will read with atten-
tion the few pages here devoted to industrial economics.

MANUFACTURES AND COMMERCE.

In the broad view, man is a microscopic parasite, possibly an
accidental product of thermal conditions, inhabiting the surface
of one of the smaller planets of a minor solar system of the uni-
verse. This wide view is not of commercial interest.

In a commercial sense, each individual man is to himself
the most important of created things, and the central figure of
existence. This narrow view is of great commercial interest, be-
cause it makes every individual of the human race a manufacturer,
producer, buyer and consumer.

Every man is conscious of certain needs and desires, and
devotes his existence to supplying those needs and gratifying
those desires, in proportion to their urgency and his own ability.
Each individual soon discovers that he is expected to give some-
thing in exchange for what he wishes to use for his own satisfac-
tion or pleasure ,and such unavoidable exchanges form the basis
which supports all trade, manufacture and commerce, as well as
all social and political structures.

The individual who can produce nothing desired by other
individuals of our race soon finds himself without the means of
supporting his own existence, and in general terms, it is true that
whatever cannot pay its own way must presently perish.

This brings all the multifarious procedures incidental to ex-
change of values into view.

Values must exist before they can be exchanged. Hence
there must be makers before there can be users, manufacturers

THE COMPLETE COST-KEEPER. 3

before there can be traders, and articles of commercial value be-
fore commerce can send its white winged fleets across the oceans.

What, then, is value?

The essential characteristic of commercial value is the pos-
sibility of exchange, or of facilitating exchange.

There is also a value of individual use, easement and delight
inhering in some things not exchangeable, but this value belongs
to the domestic side of life or else looks toward hermitage, and
so need not be considered here where the profits expected to arise
from manufactures and commerce, and value ownership, are the
essential incentives to exertion and achievement.

Two conditions go before the possibility of exchange. First,
the articles to be exchanged must exist, and, second, those arti-
cles must be within the power, control, and handling, of those
willing to make the exchange.

Gold, still concealed in the rocky recesses of the mine, the
mahogany tree yet standing in a South American forest, iron ore
lying in the hills of Lake Superior, the unpastured verdure of a
Texas cattle range — these are possibilities of values, but they are
not actual values, because they are not yet in form for actual ex-
change. The gold must be mined, smelted and assayed, the tree
must fall before the woodman's axe, the miner's shovel must move
the ore, and the herdsman must drive his cattle to the grassy
plains, before the possible values become actual values, ready of
exchange because they have been fitted through the agency of
human labor for human use.

This leads directly to a consideration of human labor, the
duration of which is, in general terms, the universal measure of
value.

Industrially speaking, human labor may be defined as human
muscular effort, directed to the production of some article or
thing, which thing is expected to possess exchangeable value when
completed.

It is impossible, so far as is commonly known, to produce
motion without time in which to make that motion. All muscular
labor consists, broadly, of motion continued through a ccrtaiii
duration of time.

Hence the possibility of lal>or performance depends wholly

4 THE COMPLETE COST-KEEPER.

upon time duration in the future. The labor which might have
been performed in the minute just passed in idleness, is forever
lost to the individual and to the world. The labor which may be
performed in the coming minute must begin when the minute be-
gins and continue while the minute pasess, if the minute's possi-
bilities of value gain by labor are to be realized.

Day dawns; the laborer arises, fitted by sleep to begin his
task anew; the possibilities of individual gain by his own labor
are before him, but these possibilities of gain for the day are
abbreviated by every tick of the clock as it marks the changeless
flight of time from the unborn future to the dead past.

Mental labor cannot be measured and valued by the time
occupied in its performance. The conception of a fortunate
thought may occupy but an instant of time, yet this thought car-
ried into practice may earn money for generations to come.
Hence, although mental labor must always precede and accom-
pany the value gaining exertion of muscular labor, it is evident
that mental labor need not be taken into account here, where in-
dustrial problems wholly dependent on the flight of time form the
only subjects of consideration.

Defining human labor as humin muscular effort, exerted
through a certain time duration towards the production of things
expected to have exchange value when completed, acceptance of
labor duration as the one standard for the measurement of ex-
change values of labor product becomes unavoidable.

In fewer words, labor duration measures commercial
exchange values.

Thus, roughly speaking, an ounce of gold is worth at the
gold mine ten times as much as a ton of iron ore ready for Lake
Superior shipment, because it takes ten times as much human
labor, measured in time duration, to obtain the ounce of gold as
is needed to procure the ton of iron ore.

The possibility of value is everywhere present ; the earth may
be made to bring forth its fruits, the sea holds fish, the running
river may be made to drive the factory wheels, and the winds,
so idly blowing, may be made to toil in turning the millstone or
the dynamo, but none of this possible value becomes actual value
until after it has passed into human possession, and assumed an

THE COMPLETE COST-KEEPER. 5

exchangable form through the expenditure of human labor, or
labor directed by the oversight of man. Hence while possible
values are everywhere existent, actual values are wholly depen-
dent on labor, which not only conquers all, but actually creates
all, so far as use and value to the human race are concerned, and
so makes itself the foundation of wealth, society, the state, and
continued human existence.

Admitting that exchange of values is the prime requisite of
felicitous human existence, it becomes pertinent to inquire what
exchangable values inhere in the average individual.

A new born babe is helpless, and is without present com-
mercial value ; it has a possibility of future commercial value, and
a present non-commercial individual value to its parents. At the
age of fourteen or fifteen the youth has cost a certain investment,
and in ordinary cases may be held as ready to begin fitting him-
self to take an active part in manufactures or commerce. At the
age of twenty or twenty-one the young man reaches the period of
individual effort and should be able to earn $500 yearly, of
which say $400 go to maintenance and repairs of the individual,
leaving $100 net gain, which, with money at 2 J per cent, inter-
est value, gives this young manufacturer or merchant an in-
dividual cash value of $4,000, thus making him a capitalist with
ample means to begin what may become a successful career as
a maker or seller of things, that is to say, in manufactures or in
commerce.

It thus appears that the average man has a certain value in
the form of his own labor possibilities which he can exchange
for the things needful to his continued existence.

This labor may be expended in tilling the soil, in manufac-
turing operations, or in buying and selling.

If the individual elects manufacture as his method of ex-
changing his labor for what he desires, he may conduct an indi-
vidual business, as a blacksmith, a wheelwright, a shoemaker and
so on, the limiting condition of such individually directed labor
being the value of plant demanded for successful operation.

Obviously, the indivickial whose only capital is his own labor,
cannot enter at once upon large operations, requiring great
expenditures of accumulated labor in form for ready exchange,
which is termed capital, or wealth.

6 THE COMPLETE COST-KEEPER.

Hence, in a vast majority of instances, the labor exchange
is effected by a sale of the labor of the individual to a second
person, who directs the labor so purchased in the production of
some form of value. This method of effecting the exchange of
labor for things desired by the laborer, brings the manufacturer
and the manufactory into view.

The average individual has nothing whatever except his own
labor as a dependance for the continuance of his existence, and
for such pleasures as existence may hold for him. From this
point of view labor is clearly seen to be all, the very sum and total
of man's life on earth.

If labor is all, the importance of the factory and the manu-
facturer, indispensable precedents to the best results of labor, be-
come second to no other potentiality. Labor is all ; it is church,
state and existence, and that nation which manages labor best,
and so obtains the greatest good for an hour of labor expended,
must inevitably rule the earth. Where labor is best managed,
there must come the most wealth, the most comfort, the best food
and the most human happiness ; the best labor management means
the highest labor hour production, and hence includes the possi-
bility of the highest labor hour recompense, and the least inter-
rupted labor employment.

Considering the factory and the factory manager as produ-
cers of exchangable values, it is at once seen that they are every-
where present. The sheared fleece of wool is the finished product
of the sheep farm and the shepherd ; this fleece becomes the raw
material of the cloth weaver and dyer, who sell their finished
product to the cloth merchant; this cloth next becomes raw ma-
terial for the clothing manufacturer who sells his finished product
of garments ready to wear to the clothing merchant; after the
clothing has been cast off by the wearer, it may again become raw
material for the shoddy mill, and so on, to the extreme limit of
value, which is defined by the possibility of exchange, as pre-
viously shown.

Considering the manufacturer and the merchant, it is seen
that the manufacturer changes the form or constitution of the
values which he manipulates, while the purely commercial agent
does not change the form or nature of the values which he han-

THE COMPLETE COST-KEEPER. y

dies, but changes their location and ownership, adding to the
values he handles by his own labor and foresight.

The maufacturer in most cases acts first as maker in chang-
ing the form of the values which enter his factory, and afterward
as a merchant in disposing of his finished product. In some sys-
tems of factory accounting these two functions of the maufac-
turer are separated, and two sets of accounts are kept, the one
relating to changes of value form, and the other relating to
changes of finished value location and ownership. In other cases
the factory accounts are made to include the purely commercial
transactions incident to the disposition of finished production
values.

In some cases the manufacturer sells his entire product in
bulk to a single merchant, and so becomes a maker only, pure
and simple.

In both cases the factory accounting is the same.

Having thus briefly considered the inevitable relations of
mankind to manufactures and commerce, and defined value, the
accumulation and distribution of which is the motive of all human
effort, a limited consideration of factory practice is next in order.

Broadly, factory practice consists in adding to raw material
an increment of labor value, this union of the two values con-
stituting the finished product.

Obviously the factory must exist before the workman can
perform his duties therein, hence the first cost of the factory,
ground, buildings, and plant, forms the first element of manufac-
turing cost of expense, and the maintenance of the buildings and
plant forms the second item of expense. It is proper to say here,
that competition and improvement force frequent changes in plant
value, which includes all tools and appliances used in factory
production, because if the general average of the plant effective-
ness of a certain factory is exceeded by that of any other fac-
tory engaged in the same line of production, a condition of infe-
riority is established which, if not removed by improvement of
plant, leads to certain extinction.

Proof of this proposition is had in the continual decay of once
prosperous and renowned manufactories, which simply ceased to
advance when success came to them, forgetting: that every day

8 THE COMPLETE COST-KEEPER.

sees all things of human interest bettered and improved, and that
to let well enough alone is to certainly fall behind competitors.
This assurance of future improvement gives even the most recent
manufacturing plant an uncertain value, and in the present era of
great mechanical changes, necessitates a large depreciation per-
centage in plant value in factory accounting, if present value is
to be correctly represented. Besides this depreciation by com-
parison or competition, there is a depreciation of plant due to use,
which may, where up-keep is efficient, be very small, or very
great, according to the nature of the service performed by the
plant. Whatever the plant depreciation by comparison and use
may be, the total depreciation must be fully recognized in the
factory accounting if the balances are to be regarded as true rep-
resentations of present values. This point is of the broadest sig-
nificance, and cannot be too vividly present in the mind of the
factory accountant who desires to produce an accurate exhibit of
his real industrial and financial condition. A manufacturing plant
which is as much as two or three per cent below competitors in
average efficiency, is doomed to extinction if allowed to remain in
that condition.

THE FACTORY.

Supposing that the factory exists, that the manufacturer
opens its doors for business, that orders for the factory product
are received, and that workmen are present, ready to produce
these orders.

In some way the various production elements of the factory
must be called into action. There must be a path made over
which the raw material can travel through the factory, receiving
as it goes such changes of form as will convert this raw material
into finished product.

In some way, also, there must be an account kept of the mate-
rial and labor used in the production of the customer's order, so
that the cost of this production can be accurately determined.

What orders, verbal or written, must be given to open a way

THE COMPLETE COST-KEEPER. g

for the passage of the work through the factory, and in wliat fomi
shall the record of the passage of that work through the factory
be kept?

If all men had absolutely infallible memories, and were in-
capable of making any statement at variance with those memories,
it would be possible, perhaps, to carry on a successful and pros-
perous manufacturing business without the use of shop books or
factory accounts.

These conditions, however, do not obtain. It is true that
there are some men who have memories which seem to be almost
faultless, but it is well known that no two witnesses ever agree
exactly in regard to the details of any occurrence observed by
both. The simplest order delivered verbally, either in the office
or in the shop, becomes a matter of uncertainty the moment the
words are spoken, and the full scope and intent of the order can
be made certain only by a transcript in black and white, verified
by the giver of the order.

Even if entire honesty and sincerity prevailed in all business
transactions, the mere differences due to variations in individual
understandings of orders, would render it impossible to conduct
any business of magnitude on verbal specifications. This conclu-
sion renders factory records of some sort a necessity. Exactly
what those records shall be, from the receipt of the customer's;
order to the statement of shipment of finished goods, is the ques-
tion which this book will endeavor to answer by giving examples
of various systems of factory accounting which are now in suc-
cessful operation.

Factory accounting can be performed, long hand, by the use
of the ordinary conmiercial books, which are a blotter in which is
recorded a plain statement of every transaction made, a day-book;
in which the blotter entries are translated into commercial lan-
guage, a journal in which the day-book entries are once more
translated into debit and credit items, and a ledger in which these
debit and credit journal items are collected in individual accounts.
Applying this ordinary set of commercial books to the purposes
of factory accounting, the customer's order may be written out in
full on the blotter. The charges against this order, for both mate-
rial and labor, may also appear on the blotter. The blotter records

lo THE COMPLETE COST-KEEPER.

may be transcribed in condensed form to the day-book and these
day-book entries can be debited and crethted in the journal to the
proper factory departments, and such ledger accounts may be
opened as will show by their final footings upon the completion of
the order, what apportionment of credit should be made to each
department for the production of this finished order. Such a
system of factory accounting is manifestly cumbersome, involv-
ing numerous transcriptions each with its own liability of error,
and failing wholly to make one entry serve more than one pur-
pose, which is one of the principal points aimed at in modern
factory accounting.

If we consider the factory in its simplest form, where one
single workman is both master and man, there is no question in
regard to the duties of that man. What is to be done, he does.
But as soon as even one additional workman is employed by this
master, questions as to the duties of the subordinate workman
immediately arise. As the number of workmen in the charge of
the master increases and it becomes necessary to sub-divide the
oversight, these questions as to the exact scope and limitations of
duty exercised by each individual become more important. It
is not necessary to elaborate this point. The first step towards
factory organization is the allotment of specific duties, not to be
•exceeded, and not to be neglected, to each official of whatever
■degree.

In many cases, even in large factories, by which is meant
establishments employing from 500 to 1,000 workmen, it is found
advantageous to have some of the officials exercise more than one
function. A proper combination of these separate functions to be
exercised by a single individual is of the greatest importance, al-
though it is perhaps impossible to give any rules of universal
application for forming these combinations, as they depend very
largely upon the nature of the factory product.

In the succeeding examples of factory accounting, the duties
■of each official employed are clearly stated, and the combinations
of employment devolving upon each individual are specified.

Suppose an order is received and entered in a proper book
tn the factory office. This record can serve no other purpose than

THE COMPLETE COST-KEEPER. u

that of a mere memorandum, because the order book cannot well
leave the office.

Records may be made on cards instead of books, and a card
can go through the shop without injury and hence may serve
other purposes than that of a simple memorandum.

Suppose that an order received is entered on a card, which
may easily be a form printed in blank. In some manufactories,
with proper cataloging and a suitable blank form consecutively
numbered, this card entry can be made by simply filling in the
date blanks, the number of pieces, and the factory symbol of the
work ordered, and this card can be vivified, or made a live pro-
duction order, by the addition of the manager's signature or hand
stamp, and if this hand stamp be self dating, the production order
need not carry a date blank.

This production order can go into the factory, first to the fore-
man of the proper department, who may recognize it and acknow-
ledge it by his own stamp. A memorandum made from this card
by the foreman may go to the rough stores and procure the mate-
rial for the order, and be returned with the material to the fore-
man, who may enter this material charge in a blank space pro-
vided for the material charge on the blank form. In the same
way the labor charges may be made in a space provided on the
blank form and this blank form may be stamped by the foreman
with the date of finishing, and then sent with the finished order
to the shipping room, stamped by the shipping clerk with the date
of shipinent, and then finally returned to the office, containing the
history and chronology of the production, and this collective pro-
duction order and cost card may be filed without transcription so
as to be readily accessible.

This procedure involves the least possible clerical labor, and
takes the least p(3ssible storage room in the office ; it is lacking in
many refinements and safeguards of the higher developments of
Factory Accounting, but still it serves, and serves effectively, as
will be shown in the detail of Factory Accounting, as performed
by Strieby & Footc, Drop Forgers, Newark, N. J.

12 THE COMPLETE COST-KEEPER.

DEFINITIONS.

Before detailing the various systems of shop "Cost-Keeping"
or "Factory Accounting," which follow, it is proper to define
some terms in regard to which there is not, at the present time,
any conmionly accepted understanding among American manu-
facturers.

First as to the words ''Shop" and "Factory.'' Both of these
words are used to indicate buildings in which industrial opera-
tions are performed. We say a "cotton factory" or a "woolen
factory," but we do not say a "machine factory;" we say a "ma-
chine shop;" if the machine work produced is small we may, how-
ever, use factory, as in a "sewing-machine factory," or a "small-
arms factory." We also use the word "mill," for factories of some
kinds, as a "steel-rail mill," an "iron mill," a "brass mill," and so
on, and the word "works," as "The Baldwin Locomotive W'orks,"
or the "Niles Tool Works." The single word "Factory," includes
all buildings in which industrial operations are carried on, and it
has become customary for accountants to say "Factory Account-
ing," instead of "Shop Cost-keeping," and to use the expression
"Factory Organization," and those terms will be used here.

The order from the office to the factory to make work, vari-
ously called a "work-order," "job-ticket," " work-slip," and so on,
will be termed a "Production Order," and orders from one de-
partment on another will be called "Sub-production Orders." If
a production order blank is so printed as to permit the charging
of various cost items directly on the face of the production order
itself, it will be specified as a "Collective Production Order." If
the original simple production order is so devised that sub-pro-
duction orders may be attached thereto and finally form parts
of the original order, it will be called a "Composite Collective Pro-
duction Order."

Cryptic. — Hidden.

Cryptogram. — A written expression having a hidden mean-
ing different from what appears from the commonly understood
significance of the words and symbols composing it, the real
meaning being apparent only to readers holding the key to the
cryptogram.

THE COMPLETE COST-KEEPER. 13

Symbol. — A short form usually composed of figures or
figures and letters, carrying a special meaning in the factory
where it is employed. The use of shop symbols is now almost
universal. Suppose, in a certain machine shop, the letter *'M" is
made to stand for machine, and all machines constructed in that
shop are indicated by numbers, then **M-i6o" would stand for
VMachine 160." Suppose also that "S" is made to stand for steam
engine, and that each piece of every machine receives on the
drawings and in the casting and forging lists a simple nume-
rical symbol; then "M-160 S-io" might be the symbol for "the
cross-head belonging to steam engine No. 160." In a factory
where symbols are used the workmen at once adopt the symbols
instead of the full worded designation of things, because English
speaking persons naturally seek the shortest expressions.

The best form of shop symbolizing is that known as the
"Dewey Decimal System" of cataloging, because this system is
g^eneral, not special, and because it is expansive, and can be made
to catalog or symbolize any number of pieces, each in its proper
place and relation, without any change in symbols previously ap-
propriated. An exhibition of the possibilities of the decimal sym-
bol is given elsewhere, in the National Switch and Signal Com-
pany's system of Factory Accounting, devised by Mr. Charles
Hansel. Symbolizing or cataloging of individual pieces is a sub-
ject of very great importance, and in its best form, as used by
Mr. Hansel, effects great savings of labor in correspondence, in
ordering work, and in filling orders, besides adding largely to the
probability of accuracy.

Cost. — That which is paid for a thing.

Flat Cost. — The material and labor cost of producing an
article in a factory. This cost is also sicken of as **prime cost.*'

Total Cost. — The entire factory cost of producing an arti-
!t . being the flat-cost added to the proper proportion of cxpcnse-
.'st. the expense being incurred in carrying on factory operations
and so making the actual "finished product" or output of the fac-
tory a possibility.

There arc various understandings of the words "stores,"
"rough stores," "material/* "finished stores" and "stock,** when
these words arc used in connection with substances which must

14 THE COMPLETE COST-KEEPER.

undergo factory manipulation to become factory product, or have
already been subjected to factory operations.

These ambiguities of significance arise from the various dis-
positions which may befall the things which find a temporary
lodgement in the stores room, under the charge of the stores
keeper.

Suppose the factory uses numbers of some article, say a
spring, which is made from sheet metal in the factory, and that
a production order is issued for 10,000 of these springs ; the stores
room issues the rough stores for this production, say in the form
of steel sheets; these sheets are already ''material," or "rough
stores;" the springs are completed and are returned to
the stores room as "finished stores" or as "stock," whichever
term may be adopted. The primary intention is, however, that
these finished springs are not to be sold by themselves, but are
to go to the assembling room and there be combined with certain
other parts to form the wholly completed product of the factory ;
in this case the springs go out of the stores room first as rough
stores in the form of steel sheets; they come back to the stores
room as finished stores, or "stock," but assume the part of rough
stores again when issued to the assembling room, to receive more
labor in making them a part of the structure to which they belong.

Again, suppose a customer using the completed factory pro-
duct breaks a number of these springs and makes an order to the
factory for repairs, and some of these springs are shipped directly
from the stores room to fill the order. In this case the springs
are clearly finished stores, or merchandise. From this example,
which may be held as fairly representative, it is seen that finished
parts temporarily lodged in the stores room hold an ambiguous
position, since they may be shipped as they are, or may go back
into the factory and have more work done on them before they
are sold.

Recognizing the foregoing possibilities, any article or sub-
stance lodged in the stores room which must have an increment
of labor added to it before it can become a recognized part of
the factory production will be termed "Rough Stores," while all
departmental finished product which may be lodged in the stores
room, under charge of the finished stores keeper or shipping
clerk, will be spoken of as "Stock."

THE COMPLETE COST-KEEPER. 15

Stock may either be sold as it stands for repairs, or may go
back into the factory for added labor. Hence:

Rough Stores. — The raw material which is used to produce
''finished stores" or the characteristic product of the factory. Also
spoken of as "raw material." To avoid ambiguity everything
which must yet have labor performed on it to make it distinguish-
able as the product of the factory where it is located, will be
spoken of as "rough stores," although these stores may be already
highly finished, as wire, sheet metal, screws, springs or other
completed parts, purchased outside of the factory.

Rough Stores Keeper. — The individual having rough
stores in charge, in the '*rough stores room," usually.

Finished Stores. — All factory product ready for sale, or
ready for assembling; usually kept in the finished stores room,
under charge of the Finished Stores Keeper, who is often called,
and often is, the ''Shipping Clerk." The finished stores room is
also spoken of as the "Shipping Room."

Stock. — Articles which have had sufficient labor performed
on them to distinguish them as the product of the factory where
they have a temporary lodgment in the Finished Stores room, and
which may be sold as they are, without more labor, or may go
back into the factory work rooms to be assembled with other
parts.

Synopsis. — A condensed inclusive statement, giving a gene-
ral view in few words.

Synoptic. — Relating to a synopsis, or in synoptical form.

These general definitions will give an understanding of what
follows. A complete glossary, alphabetically arranged, will be
found at the close of this volume.

A COLLECTIVE PRODUCTION ORDER SYSTEM.

Strieby & Foote, Manufacturers of Drop Forgings, Newark,
N. J., employ about lOO men. The business was begun in 1879,
and up to 1883 had no thoroughly formulated system of cost-
keeping. In 1883 Mr. Foote devised an extremely simple cost-
keeping system which has been in highly satisfactory use by him
from that time to the present.

The general conception of this system is the use of a collec-
tive production order card, authorized by the general manager,
and issued by the factory superintendent, which shall order the
production of work, and have recorded on its face the various
production cost items of material, coal and labor, with a record of
the hours during which each particular tool was employed in pro-
duction of the order, and finally, after the inspector has passed
the completed order to the shipping department, this collective
production order is returned to the office and filed and indexed
according to the character of the piece. Thus a sprocket order

is indexed as "Sprocket No. ," not as "Order No. ," and

filed with all the other sprocket production orders, without regard
to the proper number, although of course, the latest sprocket order
bears the highest production order number in its class. This
method of filing is adopted to secure ready class reference to com-
pleted orders.

This procedure extends the functions of the collective pro-
duction order card to the extreme limit. So far as the factory op-
erations are concerned, the Foote production order card forms in
i: self a complete set of flat cost r.nd total cost records, and its
charges are made with a very small expenditure of labor.

The separation of all production cost particulars of any one
order from everything else, so that the full significance of the cost
items and total flat-cost of each individual order may be readily
grasped and fully comprehended, is a prime essential of effective
cost-keeping. The value of cost-keeping lies in the possibilities
of comparisons aflforded by its use, and the immediate separation
and grouping of all the flat-cost production items of each order

THE COMPLETE COST-KEEPER. 17

effected by the use of the Foote collective production order, g^ves
this readiness for comparison at the earliest possible moment, and
in such form as to be easily comprehended as to totals, or readily
analyzed as to details.

The officials of the Strieby & Foote factory are as follows:

The superintendent, a foreman of the die-room, a foreman of
the forging shop, and a foreman of the finishing room, where any
machine drilling, thread cutting or trimming is done. These con-
stitute the factory officials in Mr. Foote's system. The manufac-
turing and the selling departments are separated. The office
orders the work from the factory, the factory delivers the finished
v ork to the office, and the office disposes of this product, keeping
a record of its transactions in an ordinary daybook, journal and
ledger set of books.

In the general office there are, first, the secretary and trea-
surer, who is also cashier, purchasing agent and selling agent,
next the book-keeper, and finally the bill boy who is general office
lielper or entry clerk.

The shipping clerk has charge of the shipping-room, finished
stores, and packers, and is also chief inspector. He has under
him a subordinate inspector, who also acts as a packer.

Requisitions for finished product are made by the secretary
on the shipping clerk, in his capacity as finished stores keeper.
The shipping clerk enters the order on the shipping book, which
is the final order book, and fills it from finished stores if possible;
if not, then the shipping clerk enters the order in one synoptic
line on the factory superintendent's work book and the super-
intendent then issues a production order, and places the order
in work in the factory.

In the factory Superintendent's office, there is a Superinten-
dent's clerk, who acts as a cost-clerk to the extent of making
original entries on the collective production order cards.

This makes the entire clerical force employed in both the
commercial and factory accounting consist of four persons, only
one of whom is employed directly in factory accounting.

In this system of total cost-finding, charges are divided into
groups as follows:

(i.) Office charges invniMing all clerical lal>or, expenses of

i8 THE COMPLETE COST-KEEPER.

commercial travellers, and every outlay connected with the office
and selling departments.

(2.) Factory charges, including all realty considerations,
rent, taxes, insurance, as well as superintendent's, foreman's, and
helper's, or laborer's pay, and all factory expenses which are not
actual labor on output. This account includes repairs to ma-
chinery, coal for engine which drives the shop, all power expenses,
and every other item of outlay other than that for the labor of
workmen engaged directly in the production of manufactured
output.

(3.) Manufacturing account. This includes the day wages
or piece-prices paid to the workmen engaged in actual output pro-
duction, the coal used in heating work, which varies very greatly
with different pieces and is an important flat-cost item, pickling
and grinding and finishing, if any finishing is done.

(4.) Die-room account, including the wages of the foreman
die-maker and the workmen under his charge. No charge is made
against the die-room for power or use of machinery.

The total factory expense charges are made up by adding
the second and fourth items, — the factory expenses and the tool
room expenses, — and this total expense is apportioned among the
work-producing tools on an arbitrary w^ork-producing tool-cost
basis. For example, a thousand-pound Billings & Spencer drop
hammer, costing $1,200, is apportioned, as its share of daily total
expense, $11.80, this sum being obtained by dividing the total of
the two expense items specified, by the total cost of the work-pro-
ducing tools, thus making each work-producing tool bear a part
proportioned to its cost. In case a w^ork-producing tool is sub-
ject to an unusually large charge for breakage and repairs, its
ad valorem expense percentage is advanced arbitrarily, and that of
some less hardly-worked tool is diminished to make totals balance.

While this is not the only case within the writer's knowledge
where a direct tool expense charge is made, many factory accoun-
tants will doubt the propriety of this method of expense appor-
tionment.

Mr. Foote's argument in support of his practice is that each
work-producing tool in a factory has a certain daily, weekly, or
yearly expense charge standing against it, which it must earn to

THE COMPLETE COST-KEEPER, 19

keep the establishment out of debt. If a tool is idle, it increases
its indebtedness by every hour of such idleness, and this indebt-
edness is cancelled or paid by the profits gained from work pro-
duced by other tools which are earning money while the idler is
eating his head off.

There is another point of view of this matter of idle tools,
from which the loss entailed is by no means so important as in
Mr. Foote's estimate. Suppose that the hammer stands still; it
costs $1,200. Its interest cost per day to the shop is therefore,
if the year be held to consist of 250 working days, less than one
half dollar; an idle hammer requires no power, no coal, no ham-
merman; it is in no one's way, and it is costing nothing worth
talking about. Such would be the average accountant's statement
of the case of the idle i ,000-pound hammer.

In reply to this Mr. Foote says that the idle tool costs the
shop every day all its proper apportionment of the shop expense,
which would be its apportionate earnings if in operation, and
that, instead of losing its owners a paltry half-dollar per day, the
idle 1,000-pound hammer costs the shop 20 or more times that
sum. Undoubtedly an expense account apportionment can well
be made on an individual tool-earning basis. Mr. Foote believes
a tool cost basis division of the expense account to involve less
inaccuracy than the common method of using the totM labor hours
for the expense account divisor, and the satisfactory results ob-
tained by the use of this method of expense apportionment in
his own practice, would seem to justify him in this opinion.
Where the expense apportionment is made upon the total hours
of laljijr of some past period, it is very rarely the case that this ap-
portionment is absolutely correct for any other period of time.
In point of fact a labor hour apportionment of the expense account
can only be absolutely correct, when the factory is operated under
identical conditions at widely separated periods of time.

As with every drop forging shop, the Strieby & Foote tool-
room account is very large in proportion to the productive labor
total. All the tool- room charges are carried directly to the expense
account after reduction by the deduction of amounts paid by cus-
tomers directly for die-making. The customer as a matter of
course pays all these expenses, generally, however, indirectly, in

20 THE COMPLETE COST-KEEPER,

the form of an addition to the piece-price of the work order. In
some cases of small orders, the customer pays for the dies directly,
the charge being usually about equal to the liat-cost of the tools
required. Where the order is of sufficient magnitude to cover the
life of the set of dies which produce it, no charge is made for the
dies, nor is any charge made for die repairs for work in regular
production.

The tool-room supplies, files, oil, drills, waste, emery cloth,
and so on to the rough stores which for the tool-room consist of
dimension forgings of tool-steel, all go with the other tool-room
charges into the expense account. Whatever returns are made by
the tool-room, in the way of dies paid for directly by the custom-
ers, are credited to the die-room and diminish by so much the
die-room charge to expense.

The manufacturing stores of the Strieby & Foote establish-
ment consist wholly of steel bars of various sizes, which are stored
by being racked under cover in the yard. These stores are in
charge of a rough-stores keeper, whose duties are to rack the stock
as received by the factory, and upon the receipt of a sub-produc-
tion order from the superintendent, as hereafter described, to cut
bars of suitable dimensions to the proper lengths for heating, and
deliver them to the hammerman designated, reoorting the weights
dimensions and grade of bars so delivered to the superintendent.
This stores-keeper's labor is classed as non-productive and goes
to expense.

About 90 per cent of the productive labor in this establish-
ment is paid at piece rates. This large proportion of piece-rate
payment is probably the cause of what may be considered a rather
primitive manner of dealing with workmen's time in this factory.
The men are not checked into or out of the shop. Each workman
carries a time-book of his own, in which he enters his hours of
labor charged against the jobs on which he was employed through
the day. At the commencement of working hours, each fore-
man checks up those workmen who are present, in his foreman's
time-book. If a man is not on time the foreman makes note of
the shortage when he appears. Neither the workman's individual
time-book, nor the foreman's time-book are used in making up
the productive workmen's pay roll. The productive labor pay roll

THE COMPLETE COST-KEEPER.

totals are made exclusively from the entries on the ''production
order" cards. This makes it impossible for the shop to pay for
anv productive workman's time when no service has been ren-
dered.

After the workman's time-book has been found to agree with
the foreman's time-book in total hours it is assumed to be correct,
and the workman's order time charges are then transferred to the
appropriate spaces on the production order card by the superir
tendent's clerk.

Unproductive labor is noted by the foreman as performed on
unproductive labor cards, provided for that purpose.

Date, AfarcA 26, iSgS.

( No. j
Article. Unproductive Slip week ending— \ jjSx. '

No.

OPERATION.

No. of
Hours.

Drop.

Rate.

OPERATOR.

WreK
Endiofc.

Repairs Drop H. 5
Racking Steel 1 10
( Re bending Steps
{For Packing 1 2
Room Helper ; j

A. Smith.

S. Jones.

B. Jones.

.<fo 1

Inspector.

%4JS

UNPRODVCTIVB LABOR CARD.

The Strieby & Foote estimate on proposed work involves,
first, a reference to the sample boards, which are conveniently
hinged so as to shut up like doors, and thus give a great display
surface without taking up much floor-room, and which, at the
present stage of the existence of the company, contain so large
a number and variety of samples of pieces produced as to make it
unlikely that a model will be submitted for estimate which has
not an approximation in work done before. Each piece of work
made has its shop number stamped on it. and painted in conspicu-

THE COMPLETE COST-KEEPER,

ous characters on the board where it hangs, and is indexed so that
the production order on which the piece was made can very readi-
ly be found. With the production order for the similar piece in
hand, the estimate can be given instantly, as the safe piece-price
of the manufactured article is given on that production order.
Should there be material variations between a submitted model
and the nearest approach to it found on the sample boards, the
variation would, of course, be noticed by shading the estimate.
But it is no exaggeration whatever to say that by aid of this col-
lective production order record of past production, the manufac-
turer can tell within a few mills of what the actual manufacturing
cost of any model of drop-forging within the capacity of his ham-
mers will be.

The Strieby & Foote production order is shown below. This
is ''collective" in the widest sense of the term. It gives all shop
particulars of manufacture, the coal-cost, stock-cost, labor-cost,
tool-cost, and the total cost.

Date, March 20, i8q8.

Article, iooo Sprockets, No. 281 j.

( No.
\

No.

JOOO
IOOO

1000

OPERATION.

Block
Blank
Finished

No. of
Hours.

Drop.

Rate.

9
to
20

^°
80

OPERATOR.

A. Smith,

Punch

Inspected S.

N.G.

S9 hours at 8c.
2000 lbs. Steel at 2c.

jg hours at 1.18

Press .7S

2 hours at .jo

40 per cent.
{Can sell at is.i(> Per loo).

4.00
J. 00
8.00

40.00

60.12

46.02

'.SO

.60

108.24
'S'.J3

PRODUCTION ORDEK.

This card form is printed on heavy inatiilu paper, and delivered to tlic superintendent made

up in pads, and is numbered in numerical sequence as filled out and vivified. The

size is yji inches by 4 3-16 inches. The order is shown as completely filled.

The production-order blanks are consecutively numbered,
and are furnished for use made up in pads. They are kept by the

THE COMPLETE COST-KEEPER.

general Superintendent and are issued only by him, it not being
deemed advisable to place an act of such importance in the power
of any other subordinate.

Two books are kept in the superintendent's room by the su-
perintendent's clerk. One of these is a rough stores memorandum
book, narrow ledger form, kept with credit and debit sides re-
versed, stock received being credited, and stock delivered being
charged, and the balance on any page showing the amount of
some particular size and shape of bars on hand. Thus one dou-
ble-page is devoted, say to a record of half-inch round bars
received, and delivered by the stores-keeper from the rough stores
to the factory on the superintendent's sub-production order, which
is merely a memorandum on a blank manila slip of the number of
pieces and shop symbol of the production order. Another page
keeps a similar account of seven-sixteenth round bars, another of
half-inch square bars, and so on.

SPROCKETS.

.898.

Stock.

WeiRhU

Afar.

J 000 No. 281s, n. d.

(>xy^

iooo

INDKX BOOK.

Thb lUuDlraiioii •huws the paK^ Conn of the Indet Book, with • one-Iia«
Mie •• Sprocket" pajje. Hiln Hue reads In lull. "The factory in

make i.ooo .more or lena) tprocket*. fthop nymtwl No. t,li5, uniaKlke newdia

( n. d ) which is now ready. The Mock is 6 inches by H inches, and

the total weight of stock Tor the i.ooe pieces is t,oeo pouads.

Date, March 7u, 1898. 1'he abbreviation " a. d." la

used for '

24 THE COMPLETE COST-KEEPER.

This rough stores memorandum ledger gives information as
to the need for ordering stock, all sizes in common use being kept
on hand in considerable excess of anticipated immediate factory
demand, as about three weeks must elapse between the placing
and receiving an order for bars.

The other book kept in the superintendent's room is called
the "Index Book," and has a cut index margin filled with "group"
titles, as "Sprockets," "Cranks," and so on. This book is also
indexed alphabetically, so that articles outside of the conventional
groups may find a place. A completed work order can be readily
traced and located by reference to this index book, in which each
production order has a single line synoptic entry as soon as re-
ceived in the superintendent's office. The Index Book, as used by
Strieby & Foote is 6 inches wide, by 13 inches high, 300 pages,
with a cut margin index.

DROP U

1000 SPROCKET 2815.

BLANK.

1st. B.

SUB-PRODUCTION ORDER.

Sub-production first operation made by superintendent to the hammer room. This order is

pencilled on blank manila card. Same size as the printed production order form,

and is delivered by the superintendent to the rough stores-keeper, who shears

the stock to fill the order, and then delivers the stock and order both to

the foreman of the hammer room. A similar pencilled card is

also placed in the rack of machine tool work cards,

kept in the manager's room. These are both

orders to " blank," to perform the first

operation on the i .000 sprockets

specified

THE COMPLETE COST-KEEPER. 25

DROP L.

1000 SPROCKETS 28ir>.

FINISH.

3rd D.

SECOXn PRODUCTION ORDKR.

Pencilled second o|>eratiun order, made on a blank manilacard and kept in rack in ^u|>erin.
tendent's room, to show what orders for work are before " Drop L." The foreman ot'
the hammer ntom, havinfi; received the rough stock and the pencilled produc-
tion order for the first operation, i», by shop cuRtoni. also ordered to
perform the second operation of "finishing" the previously
"blanked" .oprockcts on the same tool, without a
separate detail order.

Production orders wlien issued by the superintendent's office
do not have the "number of pieces" blank tilled, but are accom-
panied by a pencil memorandum of the number of pieces ordered ;
the amount of stfx*k needful for the order is then noted on a plain
slip and sent by the superintendent to the rough stores-keeper,
and when the notification of the delivery of the bars to the factory
is received by the superintendent from the stores-keeper then the
number of pieces for which the material is known to be iifhantl is
filled in on the prcnluction order; this number entry vitalizes the
order and places it in work. The cause for this prtKedure lies in
the possibility that there is not enough material in the rough
stores to produce the entire order ; in this case a part of the order
may be placed in production, and the purcliasing agent is notified
of the n nts of the situation, and when more Iwirs are re-

ccive<i a . -cntary pro<luction order is issue<l to make up the

26 THE COMPLETE COST-KEEPER.

deficit in the original, or the production may be wholly delayed
until material is received to complete the entire order.

PRESS A.

•

1000 SPROCKETS 2815.

PUNCH.

2nd C.

FOUR.

THIRD PRODUCTION ORDER.

Pencilled third operation order, made on a blank manila card, and kept in machine tool rack

in superintendent's room to show what work is before " Press A."

Material is delivered by the stores-keeper to the foreman of
the hammer-room in three forms; sheared to length for a single
forging, sheared to double length for two pieces of forging, or
sheared into heating lengths. In consequence of this, the exact
number of pieces made on the order cannot be known until after
the stock is. sheared and counted, or in case of bars cut to heating
length, until after the first hammer operation has been performed.
To avoid changing the number of pieces on the production order
the "number of pieces" space on the production order card is not
filled until a certain count is obtained, either by the stores-keeper's
count of sheared stock delivered to the hammer shop foreman, or
from a count of pieces passing through the first operation.

The mechanical aids employed by Strieby & Foote in their
factory accounting are few, but of much interest. The first is an
ingenious arrangement of swinging sample boards, whereby a
large area of display surface is made to fold into small space,
and yet is all of it very readily accessible. This permits the plac-

THE COMPLETE COST-KEEPER.

Strieby

Five boards are hiiiK^d tt> one axis by means <>(' cranked liinj^es, the Ix^ards being uf slightly
diflfci-ent lengths, »o that (he hinges will pass each other.

ing of the display boards in the 'manager's office, close to his desk,
so that he can instantly see ancl handle any piece of work ever
produced by the factory.

The illustrations fully exhibit the ingenious method of hing-
ing these l)oar(ls, so that several of them can swing independently
on the same axis without interference, which is a matter requir-
ing a considerable exercise of invention, as the boards are large
and heavy, and must be supported in a very substantial manner.

These sample lioards afe 26 inches wide by about 6 feet long,
as shown in Figs, i, 2, 3, and 4. The boards are made of pine,
tong^ed and grooved to wide end-pieces, as clearly shown in Fig.
2, and varnished with shellac. The hinges are screwed to the ends

THE COMPLETE COST-KEEPER.

of the boards, and are cranked, and the top hinges turn on a long
hinge pin on which they are located one al3ove another, as shown
in Figs. I and 2. This vertical hinge pin is supported at the top
end only ; the top end is secured by a shoulder and nut to a
wrought-iron top \'-brace support, see Fig. 2, projecting horizon-
tally from the office partition, to which the feet of the \'-brace are
screwed. The bottorii hinges, see Fig. 3, are somewhat different
in form ; the hinges are cranked, same as the corresponding hinges
over head, and are screwed to the under edges of the doors, all
in a manner similar to the top hinges, but the lower hinge-eyes are
made of differing diameters, and drop down on supporting shoul-
ders formed on the bottom hinge pin, which is made in different
diameter sections, each of suitable length, and secured to a cast-

FiG. 2. Top Hinges of Sample Boards.

THE COMPLETE COST-KEEPER.

Fig. 3. Bottom Hinges of Sample Boards.

iron sole-plate, which is bolted to the floor. All of the hinge work
is made of wrought steel and polished. Five boards are hinged
in one bank, on one axis, and there are three of these banks, giv-
ing fifteen of these large boards, making a display surface in all
of over 250 square feet, although by virtue of this highly ingeni-
ous method of banking and hinging these fifteen Ixxirds are made
to take up only a very little space in the manager's office, which
is by no means a large apartment. Distance blocks are placed at
tlie edges of the boards, to make them close without the samples
on two facing boards touching each other. These boards are all
hinged close to the wall, one bank at the right of and close to the
manager's desk, then another bank in the corner, and the third
bank close to the second bank against the office wall at right an-
gles to the manager's desk. This novel arrangement of sample
boards was invented by Mr. Footc. It is a great convenience, and
effects great savings of space and lal)or, and is not unsightly.

The other mechanical aids consists of two racks of pigeon

THE COMPLETE COST-KEEPER.

Fig. 4. Sample Boards Open to Display Samples.

holes, both placed in the superintendent's ofhce ; one of these is
long enough to contain 24 compartments, which embraces the
entire range of the factory production classes. When a produc-
tion order is vivified by filling in the number of pieces after the
stores-keeper has delivered the bars to the hammerman, it is
placed on one of its long edges in its proper class compartment,
and remains there until the work is completed, ready for instant
access, either for purposes of reference, or to receive the labor
charges transferred to these collective production orders from
the workmen's time-books by the superintendent's clerks or cost-
keeper.

The other rack of pigeon holes is long enough to contain in
one row the entire list of production tools, hammers, presses,

THE COMPLETE COST-KEEPER.

Fig. 5. Rack of Production-Order Pigeon Holes on Top of
Superintendent's Desk.

drills, and so on, which the factory has ready for operation,
alphabetically desig^iated. When a production order is vivified,
the superintendent decides upon the tools which are to be used
in making the work and fills out plain card blanks, same size as
the production order, with the number of pieces and piece symbol,
one card for each machine operation to be perfomied, and then
racks these cards on their long edges in the pigeon-holes bearing
the alphabetical designation of each tool selected.

This is a very convenient system of keeping a record of work
in progress and in prospect for each productive machine. With-
out touching the cards in the machine rack, the superintendent
can tell by a mere glance how much work there is before any ma-
chine tool in the factory. Something of this same nature and
scope appears in several of the factory systems describe<l. but
nothing could well be cheaper, or more effective, or operated with
less labor, than these simple pigeon-holes and pencilled manila
cards. When an order operation has been worked by a certain
machine, the card indicating that operation is simply taken from

THE COMPLETE COST-KEEPER.

Fig. 6. Rack of Pigeon Holes Containing Individual Tool Work

Slips, in Superintendent's Room.
the pigeon hole and thrown into the waste basket, after ascertain-
ing that the proper labor charge has been made on the collective
production order.

When a production order is filled, the card and work go to
the inspector, and thence to the finished-stores in charge of the
shipping clerk, the production order going to the president, who
is also revisionary cost-clerk. Mr. Foote devotes two hours daily
to the production orders, because these cards and the information
they contain bring him into the closest possible touch with every
department of the works. It is the work of but an instant to com-
pare the per-ioo selling cost, or the factory cost, or stock cost, or
coal cost, or time cost in hours required, for production of any
one order, with that of another order in the same generic class,
and any notable discrepancy between the cost items of two closely
related orders, is at once made a subject for investigation.

Thus this simple collective production order secures to Mr.
Foote a permanent and accessible record of all important particu-
lars of every piece of work made in this drop-forging shop. For

THE COMPLETE COST-KEEPER. 33

his personal use Mr. Foote makes up a little book of per- 100
prices, but, so far as the permanent shop record is concerned, the
collective production order holds everything, and its charges are
not transferred to any shop-lx)ok of any kind.

It will be observed that Mr. Foote's system separates the tou!
shop cost from the office charges entirely. His conception is that
the office stands in the position of a merchant dealing in finished
products only. The finished product costs the office so much, that
is to say, the total factory cost. Then to this factory cost the
office adds its own expenses and the selling expenses and its pro-
fit as a dealer, which gives the total cost, or selling price, viewing
the office and factory as parts of the same unit.

The Strieby & Foote production order card bears, first, the
date and order number, and name and shop number of the piece.
Then comes a line of column-headings, which explains itself.
The hammer work, in the example shown, was at piece rates, 40
cents per 100 for blocking out, 50 cents for blanking, and 80 cents
for finishing. The coal cost was 8 cents per hour. Two thousand
pounds of steel were used, charged at 2 cents, which was an ad-
vance of about 7 1-2 per cent, upon cost at the factory door. This
makes a total stock, labor, and coal cost of $60.12 when the ham-
merman was done. Then the per-hour share of shop expense for
the tool drop hammer "H," $1.18 per hour for 39 hours, equal to
$46.02, is charged. There is a hole punched in each sprocket by
B. Smith, who did the work in two hours, at 75 cents per hour, on
a press which had a 30-cents per hour charge. These items bring
the total shop cost up to $108.24. Then the office charge of 40
per cent., covering office and selling expenses, is added, making
the total cost for the 1,000 pieces $151.53. The middle of the
ticket bears the memorandum based on this 1,000 piece cost : "Can
sell for $15.16 per 100." The left-hand comer bears the inspec-
tors check of "1. 000 O. K. No N. G."

The inventory is made yearly in the usual manner by actual
count and survey. Nothing in the factory accounting gives any
information which would enable an inventor>- to he made from its
records.

Synopsis. — To bring the principal natures of the torcj^mng
$tory of the Strieby & Foote single-printeti form cosl-keeping

34 THE COMPLETE COST-KEEPER.

system clearly and succinctly before the reader, the following re-
capitulation in brief is given.

The manufacturing is divided from the selling.

The manufacturing officials are the Secretary and Treasurer,
who also acts as Cashier, Purchasing Agent and Selling Agent,
a Book-keeper, and an Entry Clerk, three persons in all.

The shipping clerk, in charge of the packing and shipping
room and the packers, and of the finished stores, also acts as final
inspector, and has under him a subordinate inspector, who helps
in packing. The shipping clerk keeps the order book, fills orders
from finished stores, and makes requisitions on the factory for
production by one-line entries in the factory superintendent's
work book. When a factory production order is filled the ship-
ping clerk receives the finished product, and the production order
from the factory superintendent, certifies the inspection and orders
shipment, sending the completed production order to the general
manager.

The factory officers are, first, the factory superintendent, who
has full authority over the entire factory including the tool-mak-
ing department. The superintendent has a clerk who is the nomi-
nal cost clerk, and makes entries of production cost items on the
collective production order cards, the items being taken from the
individual workmen's time-books after they have been made to
agree with the departmental foreman's workman's time record.

In the working departments there are a foreman of the die-
room who receives and executes production orders issued by the
superintendent, and also keeps a workman's time sheet. Each
workman keeps an individual time book in which he enters his
total time, and also his divided time charges against individual
production orders. The total individual workman's time on his
own book is made to agree with his foreman's time sheet, and
when so adjusted the workman's time book becomes the basis of
the item charges made by the superintendent's clerk on the col-
lective production orders in work, kept in the superintendent's
order rack, as described.

There is also a foreman of the forging room, who receives
and delivers to his hammerman the raw material sheared and de-
livered to the foreman of the forging room by the rough stores-

THE COMPLETE COST-KEEPER, 35

keeper, as previously mentioned. The foreman of the forging
room keeps a time sheet, and each hammerman keeps an indivi-
dual time book, all as in the die room.

The rough stores-keeper piles the stock bars received under
cover, and shears and delivers them on orders from the superin-
tendent, delivering the order to the hammer foreman with the
stock, the order and stock together constituting a sub-production
order on the hammer room, recognized by the foreman. The
stores-keeper reports particulars of stock deliver)- back to the su-
perintendent's office.

Lastly, there is a foreman of the finishing room, who finishes
work as ordered by the superintendent, and keeps a time sheet,
with which his workmen's individually kept time books are made
to agree, as before.

The tool-maker's pay roll, same as that of all other workmen,
is made from production order charges.

Unproductive labor is charged on unproductive labor cards,
a reproduction of one of which is given.

The books kept are, in the office, a set of ordinary commer-
cial books.

In the shipping room, the order book, kept by the shipping
clerk.

In the superintendent's room, the rough stores ledger, and
the index book, kept by the superintendent's clerk.

In each of the departments a foreman's time-book, kept by
the foreman.

By each workman, an individual time-book.

The only printed card form is the production uiuvi. The
sub-production orders, issued by the superintendent to the ham-
mer room and finishing room, are pencilled on manila blanks,
same size as the printed production order fomi, and are destroyed
when the sub-production order is filled.

Manifestly this single collective production order card form,
gives the simplest possible system of factory accounting in which
printed forms are used, since only the one solitary printe<i card
form is used; less printed forms would be none at all.

The results gained by the use of this simplest system, al-
though limited in detail, yet contain all cost items essential to the

36 THE COMPLETE COST-KEEPER.

successful conducting of a manufacturing business, and enable
the manager to make those comparisons between the separate
items of tiat cost of successive similar or related orders, which are
a prime requisite of successful shop management. Probably no-
thing simpler could be devised which would give an equally full
record, as this record contains no item which can be omitted.

As to the pencilled manila slips emanating from the superin-
tendent's office to the rough stores-keeper, the tool-room, and the
production department foreman, they are really sub-production
orders, and in more elaborate cost finding systems all sub-produc-
tion orders are preserved for possible future reference. The sys-
tem, however, loses no essential advantage by the destruction of
these inexpensive pencilled manila cards, since the resultant ex-
penditures produced by each are transferred in separated items to
the collective production order card.

Drop forgings constitute a comparatively simple manufac-
ture, and hence the production order card form carries but few
divisions ; the number of these divisions might be materially in-
creased, thus providing for a more extended variety detail pro-
duction operations, without increasing the area of the card form
to inconvenient dimensions.

The actual percentage of flat-cost due to the working of this
system is extremely small, since there is no person employed who
would be thrown out of employment if the cost-finding was aban-
doned. The superintendent's clerk is nominally the cost-keeper,
but a large part of his time is devoted to other duties, and he
would be retained if no cost keeping was done. As for the two
hours daily which Mr. Foote himself gives to the production
order cards, he would have to give very much more time to obtain-
ing the information needful to the intelligent direction of the
works, if he did not have the story told by the card entries to
guide him. From all this it is clear that the system, as detailed,
costs but a very small part of the savings which are effected by
its use in the factory, besides supplying the manager with infor-
mation which is really indispensable.

A SIMPLE SYSTEM FOR DUPLICATE WORK.

The Hyatt Roller Bearing Company employs about fifty
workmen in three departments, the drawing room, pattern shop
and machine shop.

The Hyatt roller bearings are made in a vast variety of dia-
meters and shapes, adapting them for use in machines of almost
every description. The bearing consists of soft steel rollers made
of coiled flat-steel bars, which travel round and round in a sheet-
steel shell made in two pieces with angular margins of junction,
confined in cast-iron bearings or hanger boxes of suitable exterior
forms. Half of the rollers in each bearing are cased in brass cages,
thus ensuring their own parallelism, and also the parallel move-
ment of the remainder of the rollers, which run free in the journal
box.

When Mr. T. J. Tellefsen undertook the management of the
establishment, there was nowhere recorded any accurate infor-
mation as to the cost of its products. Bearings of certain dimen-
sions were said to cost certain amounts,and were sold at prices
based on these asserted costs, which were, in many instan-
ces, it is almost needless to say, very far indeed from even toler-
ably close approximations to the actual figures, as obtained by the
use of the six loose blanks and the single cost book which embody
the entire machinery of Mr. Tellefsen's cost-keeping methods.

The original scheme of his system included only three
printed blanks and a single book called the "Flat Cost Book."
wherein the flat cost items are recorded and aggregated. The
three original cards were the "Production Order," the "Cost
Card," and the "Workman's Time Card."

To these three original blanks, which were successfully used
for a considerable time, three other blanks have now been added,
the later three serving to reduce the labor of the foreman of the
machine shop, and to ensure accuracy of sub-division in the
record of workmen's time distribution. These three supplemen-
tary cards are numbered 3, 5, and 6.

The addition of these printc<l forms is merely an illustration

38 THE COMPLETE COST-KEEPER.

of the general truth that where a factory accounting system is once
introduced, it tends towards self-perfection ; the ease and accuracy
v;ith which printed forms collect the costs of details which they
fully cover, infallibly leading to the devising and installation of
additional blank forms, precisely covering details which were not
reached in a wholly satisfactory manner by the blank forms before
placed in use. The economical limit of the number of blank forms
which may be employed in a given factory cannot be fixed ; it is a
safe statement, however, to say that it is economical to use any

Hyatt Roller Bearing Co., Newark, N. J.

Their No SHOP ORDER. Our No

Special Instructions Date 19 . .

• • .

Ship to

Via : To be Completed

Completed

Invoice Per

FORM I. PRODUCTION ORDER.
8^ ins. wide by 5% ins. high. White paper

form-blank which collects cost details not wholly and particularly
recorded by the forms in previous use, or which conveys informa-
tion not otherwise clearly and definitely imparted. This statement
obviously opens the way to the employment of a considerable num-
ber of blank forms, and it is undoubtedly economical in all cases to
add a new blank form to any accounting system, whenever it be-
comes clearly apparent that such addition can aid in producing
an accurate record.

It is also true that the tendency of every factory organization
is always towards increased detail in productive labor time divi-
sions. Originally this extremely simple system produced a
time record divided only by labor charges to the different order
numbers on which the workman was employed. Later it was

THE COMPLETE COST-KEEPER. 39

found important to know the time expended on each operation
performed on each order number, so form-blank No. 3 was devised,
by which each order is charged with the individual labor time of
each separate operation performed in the execution of the order
during one week.

The added forms 5 and 6 are obviously useful labor savers, as
well as needful conveyers of information in unmistakable form.
Previous to the introduction of forms 5 and 6. their equivalents
must have been original productions, made either by the chief
draughtsman or the foreman of the machine shop, or by the work-
man himself, and being made without printed forms must have
been liable to errors and difficult of filing and preservation. In
such a case, where fixed terms of information and cost are to be
recorded for each separate order, it is always economical to pro-
vide and use a printed form.

• The production order is authorized by the manager and made
by the clerk.

Fig. I is a reduction of the office order to the shop to
produce merchandise or finished factory product. The size of
the original is 5 J inches x 8? inches, which makes a wide line
space, and increases legibility. This card is printed on stiff paper,
and has pinned to it when it is sent into the shop the card shown
in Fig. 2, size 5J inches x 8^ inches, which is ruled in three divi-
sions, the first for standard stock parts to be drawn on the order
from the finished-store rooms, the second division for regular cast-
ings taken from the rough stores, and also containing space for
entries of sundries, while the third division contains in five lines
the final cost-totals, so that this single card is made to include the
final office record of flat cost of materials and labor, and the total
cost, with the per cent., additions for shop expense and office ex-
pense included ; thus the entire accounting history of the order
is contained on this one card, which may, of course, be filed, card-
index fashion, in a very small space, so that the card of any order
in a year's work, or even more, is instantly accessible.

What is called the ''Cost Card," is shown in Fig. 2. The
blanks of the first division of this card are filled by the clerk ; all
the shop entries are made by the department foreman. The
entries in the final division of six items of totals arc made in the

THE COMPLETE COST-KEEPER.

WEIGHTS OF MATERIALS USED IN
BEARINGS.

Order No Order entered ,

Rollers.
Yoke. . .
Lining.
Sleeve .

Size
of stock

Grade

Size.

Weight

Cost

Amount.

Castings jH!^''

Sundries

Total Cost of Materials Used

Total Amount of Labor

% for Shop Expenses

%ioT Office Expenses

Total Net Cost

Amount of Invoice

FORM 2. COST CARD.
s!4 ins. wide by B% ins. high. Heavy paper.

THE COMPLETE COST-KEEPER. 41

office, so that the card serves in a very perfect manner its two pur-
poses of a current and a final record, as it gives no general infor-
mation, or total cost information, until after the final six entries
are made on the card after its return from the shop. This is a
highly meritorious combination and one which is not altogether
obvious, inasmuch as the matter tabulated in the final six items of
the shop order card is often separated from the stock card
in cost-keeping practice, and kept in a separate book, often
locked, although the information contained in the shop order is
always an essential part of the conditions leading up to these final
totals, and the final totals are often cryptic when read apart from
the shop order.

Any degree of privacy in the final disposition of these shop
orders after they have been made to include the total costs may be
had if they are subjected to card-index filing, as with a locked
cover to the filing case they are just as secure as total-cost volumes
with locked covers in a locked cabinet.

A duplicate production order is made by the clerk and sent
to the chief draughtsman, who enters the order in a ''Specification
Book," kept by him, and returns the order to. the clerk, signed with
his name, and it is filed by the clerk as a '"memorandum" produc-
tion order. The chief draughtsman makes drawings as needed,
orders patterns made by the pattern maker, and sends patterns and
drawings to the clerk as soon as the patterns are completed. The
pattern maker keeps his time on his workman's time card, same as
the machinists. The clerk files in sequence, on his "work in pro-
gress file/* the duplicate production orders returned from the
chief draughtsman, and as soon as an order is completed the memo-
randum slip is removed from the **work in progress file" and
placed on the permanent file, in sequence, all the records per-
taining to the order going into the permanent file with it. In the
machine shop, part of the work is day work, part piece work. The
piece work time is kept on the regular time card, same as if day
work.

With the production order a "Detailed Time Card," form
3, is sent to the shop foreman, with the heading blanks filled. This
detailed time card is ostensibly located at the machine shop fore-
man's desk : it may, however, in certain cases, go to the head work-

DETAILED TIME CARD.

To be filled out by every man working on orders designed to be carried
through in detail. You will find this card over the foreman's desk. No
excuse accepted if you fail to put down below any time which you put in
on this order. If you are not sure ask the foreman.

OrderNo W»»U •.nHintr lOO

No. Boxes

niam <:kaft

Style

Man

OpKRATlON.

M. Itu. w.

Th.

Total. ' Ra'te

Amount

Laving out and

>J Kin PiV

ces.

Cutfinu:i'iatr«..|H ... Time . .

Grooving Plates

H.. ..

Hammering,
liendin? and
Rolling Plates

N .:

"■

IH^WM^B

"■■"

^'^""

^^"*

H...

....

Caulking Ends

H...

Fitting Caps

•n'"

H.. ..

Drilling Cap,
Shell & Saddle

H...

Riveting
Saddle

H.. ..

Assembling

H...:

........!....

.. ..

Grooving Ends

N....

1 1

H.. . I....I

Boring Saddles

N...: ...1

H....I....I

Grinding Cap

H...

Grinding
Saddles

"■"

H.. ..

....

Dressing Yoke

H.. ..

....

Winding

Rollers

(Ft.)

N.. ..

■"

H....

....

Cutting Rollers

N.. ..

H.. ..

::::::::!::::

Dressing
Rollers.

, ... 1 ... .

. . . .

....

::::l:::.

O K.

Put No. of Pieces in upper space (I"
Time in Hours in lower space (H

)• 1

Foreman.

Return this with Material Slip and Production Order

Ordered Comp.

FORM 3. DETAILED TIME CARD.
Sji ins. wide by 85-8 i"9. high. Heavy paper.

THE COMPLETE COST-KEEPER. 43

man on the particular order to which the card belongs. Every
workman performing any operation on the order must note the
time of that operation on the ''detailed time card." This gives
time records, and also serves to compare the time of one work-
man with that of another on the same operation.

The detailed time card is finally certified by the foreman and
is returned to the clerk at the end of the week or with the com-
pleted order. If the order is still in work at the end of the week,
then another detailed time card bearing the same order number
has its headings filled, and is sent to the foreman for use the next
week.

Having received the office order, as shown in Fig. i, the shop
foreman proceeds to fill the finished-stock and rough-material parts
of it from the stores-room, and to give these requisites, ^yith a
workman's time card, as shown in Fig. 4, size 5 inches x 8 inches.,
to the man who is to perform the needful labor on the order. This
time card may have the workman's number supplied in the office,
if thought desirable ; such is the practice in the Hyatt shop, whicii
does not employ so great a number of workmen that the manager
has no knowledge of personalities.

It will be observed that the card is made for the full week of
seven days, and that it has three lines of special accounts, "New
Tools," "Repairs," and "Expense," as its head. As the workman
himself fills out this card, he is his own judge of what shall be
charged to new tools, what shall be charged to repairs, and what
shall go to the "expense" or "shop" account, — three items which
can easily be made subjects of controversy even among expert cost
accountants. "Expense" is a general item, which may include
anything or nothing, and some shop cost-keepers abolish ^'expense'*
and "shop" entirely from the list of chargeable accounts, asserting
fhat these exchangeable items open the way for a noteworthy per-
centage of inaccuracies.

"New tools" is rated as an assets item, invariably, while "re-
pairs" are charged in the expense account. Mr. Tellefsen has for-
mulated this theorem: "Whatever is a direct factor in the produc-
tion of salable goods is an asset ;" and he governs himself by this
assertion. Hence, if a bar of tool steel is given to the tool smith
to forge into lathe and planer tools, these tools are considere<l

THE COMPLETE COST-KEEPER.

TIME CARD.

HYATT ROLLER BEARING COMPANY,

No Weekending 19,

Name

Dept

Order Mon.

Number.

New Tools

Repairs

Expense

TOTALS

Tue. Wed. Thu. Fri. Sat Sun. Remarks

FORM 4, WORKMAN S TIME CARD.
5 ins. wide by 8 ins. high. Heavy paper.

THE COMPLETE COST-KEEPER. 45

assets, having a value composed of the shop cost of the tool-steel
bar and the total cost of the smith's labor. But, when these
tools have been worn by use to where they must go to the smithy
again, this labor is charged as "repairs," and goes into the expense
account. Or, suppose a new boring bar, having a multiplicity of
cutters, is made. — such tools being largely used in these shops,
— the total cost goes into the assets, and is inventoried as a profit
item. But repairs on this multiple-boring bar, even if these repairs
involved an entire new set of cutters, made from new tool steel
from the stock room, would be charged as repairs. If the new
cutters made of new stock were credited as new tools, it would
appear in the inventory that this particular boring had two com-
plete sets of cutters, whereas, in fact, it has simply had its worn
out original set of cutters made good.

But, by parity of reasoning, it at once appears that, while
the number of lathes and planers, say, remains unchanged in the
shop, the shop should never be credited in the inventory with
possessing more than one set of small tools for each machine tool ;
hence the forging of new lathe and planer tools, and the cost of the
new bar of steel from which these tools are made, should go to the
repair account, as expense, instead of into the inventory, as an
asset, in case these tools merely replace old tools which have been
worn out. This practice keeps the inventory correct, if small
tools are accepted assets. Many factories charge all small forged
tools, such as lathe and planer tools, boring-bar cutters, and so
on, directly to expense, and there is little question that small drills,
files, and hacksaws should go with the oil and waste into the ex-
pense. But there is always a feeling that large drills, which are
often costly, especially if made above the usual lengths, and
which, t-hough speedily worn out if constantly used, perhaps last
for years, if used only occasionally, should be regarded as per-
manent additions to shop equipment, and hence should go into the
inventory as assets. Fluted reamers arc closely analogous to drills
in shop use, yet, unless subjected to much more violent usage
than is common custom, most cost-keepers would be inclined to
place an expensive set of new fluted reamers among the shop's
assets, instead of charging the cost in a lump to expense the day
the reamers were delivered to the tool-room. But circumstances

THE COMPLETE COST-KEEPER.

alter cases, and, where a fluted reamer is in constant use, as, for
instance, in certain locomotive shops, where a man, in bolt-
ing the cylinder castings together, uses no other cutting tool, the
reamer is rapidly destroyed, and, rightly enough, is charged di-
rectly to expense. Still, even in the case of this severely-used
fluted reamer, which is worn out often and replaced, it makes no
practical difference whether the first cost is carried on the inven-
tory as an asset, or is placed at once in the expense account, if,
according to the formula cited, only the original tool is credited

Hyatt Roller Bearing Co.,

Date.

19.

Order
No.

No. of
Sleeves

No. of
Linings

Thick.

ness of

Steel

Kind of
Steel

Weight of Plates.
Weight of Scrap .

Foreman

FORM 5. BUSHING CARD.
8 ins. wide by 1% ins. high. White paper, ordinary weight.

as an asset, while the frequent replacements of the fluted reamer
are charged to expense.

The total drawing-room account is charged as expense, be-
cause the making of the drawings of any new bearing always
precedes the estimate given to the prospective customer, and, as
the possible customer may not make the order finally, it is safe
to consider the entire drawing-room charges as expense, and be
done with the matter.

The pattern-making item is larger, and is separately kept. All
the foundry patterns are of cast iron, and the wooden patterns
from which the cast-iron patterns are made form a part of the
cost of the iron patterns. Since the iron patterns are used directlj
in the production of salable goods, it follows that the pattern shop
account is a credit, and goes into the inventory as an asset.

THE COMPLETE COST-KEEPER,

Form 5, 8 inches wide x 3} inches high, is a "Bushing Order/*
or a production order for the soft sheet-steel lining of the box on
which the rollers travel. This order specifies the number of bush-
ings required ,their thickness and quality, and the weight of plates
used and weight of scrap produced in filling the order. This form
has its dimension blanks filled by the foreman or chief draughts-
man, and is signed by the foreman in all cases, and finally goes
to the clerk.

Hyatt Roller Bearing Co.

Date.

Order
No.

No. of
Rollers.

Dtam.

Length.

Size of
Stock.

R or L

Diam of
Shaa

WeiKhtofjWeiehtof
Scrap. I Rollers.

Foreman.

FORM 6. ROLLER PRODUCTION ORDER.
8 Ins. wide by 3*^ In. high. White paper, ordinary weight

Form 6, 8 inches wide x 3^ inches high, is the "Roller Pro-
duction Order,*' and may be filled either from stock or by actual
production. The headings are self-explanatory. This order is
signed by the foreman, and finally goes to the clerk.

When the order is completed it is sent to the clerk, together
with all the shop orders and records bearing that number, and
the clerk transfers the items to the "Flat Cost Record Book," the
size of the page, shown in Fig. 7, being iij inches x 9J inches.
The illustration shows only the left-hand portion of the page, addi-
tional order columns extending the width to the iij inch dimen-
sion given The head line is for order numbers, which can be
duplicated in adjacent columns, if one column has not room

THE COMPLETE COST-KEEPER.

Ommr No.

•^^ Hr». Rate Amount

Man's
No.

Hre. Rate | Amount

Pattbr.s'
Making.

Totals

Labor

Total
Labor

Kind or
Size.

Lbs.

Cost

Kind or
Size.

Lbs.

Cost

Rollers

Compo.

Lining

Sleeves

Cast Iron

Sundries

Total Cost

FIG. 7. PARTIAL PAG?: OK FLAT COST RECORD BOOK.

THE COMPLETE COST-KEEPER. 49

enough. The first line of footing- totals is for pattern making, the
second for other labor, and the third is for regular items from the
finished-stores room, with ample space for sundry and unclassified
items. The final line of totals gives the flat cost, or prime cost,
and from this the total cost is made up of these flat-cost items, the
percentages for shop expenses and office expenses being added.
These percentages are calculated from previous performances, all
records including the value of output for the month in which the
performance occurred, which is in (3) another form of ''number
of men in work.'' and is perhaps the more correct basis of expense
apportionment.

The shop-cost items include interest and taxes on realty, de-
preciation of tools (which is calculated on a basis that always pre-
ser\'es a value), insurance, and repairs. The office expenses
include all office outlays and salaries, supplies, advertising, and
traveling and sales expenses.

With these constant expenses, or expenses which, if not con-
stant, may be larger when fewer men are in work and the monthly
output is smaller, it is, of course, absolutely essential that the total
value of the output for some stated period be selected as a basis
of computation, since, in case of a $5,ocx> output per month, the
expense-percentages, if the expense remained constant, would be
twice as great per dollar of output as if the output were $10,000
for the month. All the expenses have been carefully com-
puted for a long series of months, and the expense-percentages
for shop and office are tabulated with their totals of selling pro-
duction, and the resultant shop and office cost-percentages. For
current estimates this preceding tabulation is consulted, a period
being selected in which the output of salable product corresponded
in value with what is assumed as the probable output of the current
similar period. At the end of the year all these periodic expense-
percentage assumptions are tested by comparison with the actual
expenses, and are invariably found to fall within a wholly insigni-
ficant percentage of error. This is what might be expected by
experienced shop accountants, who well know the surprising uni-
formity of expense additions demanded in proportion to the num-
ber of men in work, or the total value of output for a limited
period of time.

50 THE COMPLETE COST-KEEPER.

Mr. Tellefsen believes that the error in his estimates averages
considerably less than one per cent., and even says that he himself
has often been surprised at the close coincidence of his estimates
and the actual total costs as shown by the completed account of
finished work.

The time card gives the workman's own account of his shop
lime.

This is mechanically checked by a simple and effective form
of time-recorder, so arranged that, by the mere pushing of a but-
ton, a record is made, on a ruled sheet, of the time of each work-
man's entering and leaving, the record being in such form that
it can be filed and compared with the time entered by each man
on his card.

The importance of a mechanical recorder for workmen's time
cannot be over-estimated, especially in connection with any cost
system in which the workmen make their own entries on the cost-
cards, as it eliminates all possible chance of controversy, and a
comparison of the mechanical record and the time-card filled out
by the workman settles every question likely to arise between the
men and the paymaster.

The pay-roll is made up from the workmen's clock record.

It is an open question whether the workman or a time taker
should take the workman's detailed time record. Both methods
are largely used, and there are strong arguments in favor of each.
It is, perhaps, cheaper for the shop, in first cost, to have the detail
time of the workman taken by a time clerk than to have each
workman record his own time on a time card, and errors may be
written by either method. With workmen of very small education
the time card is quite as likely to be correctly filled as where the
mechanic has greater clerical ability; it seems more a matter of
natural inclination toward business accuracy than of literary ac-
quirements, and some workmen who know but few words of Eng-
lish always fill their cards correctly, while some of the best edu-
cated mechanics are not above frequent errors. Time-takers are
also liable to errors and misunderstandings, and, as previously
remarked, the question is open, with the weight of greater use in
favor of having the workman fill an individual card.

THE COMPLETE COST-KEEPER. 51

SYNOPSIS.

OtFiaALs. The gfeneral manager, v% no authorizes all pro-
duction orders, the clerk, who is book-keeper, time-keeper, stores-
keeper and cost-clerk, the chief draughtsman, and the foreman 01
the machine shop.

Books Kept : The flat cost book only, so far as the factors-
accounting is concerned.

Card Forms, six: Production order, weights of materials,
detailed time card, workman's time card, bush order, and roller
order.

The extreme simplicity of the system is made possible by the
similarity of all orders, which, though differing vastly as to dimen-
sions, consist in all cases of essentially the same parts, and the
single clerk is enabled to perform the multiplicity of duties enume-
rated because of thesmallness of the force in work.

The system records costs accurately so far as it goes.

No stores-room books are kept, and the factor)' accounting
gives no basis for a record inventory.

Factories employing only a limited number of workmen, yet
too many to be operated with satisfaction without some form of
accounting beyond the time-book and pay-roll of early days, can
find in these methods the basis of a system meeting their require-
ments.

A GENERAL SYSTEM FOR A MEDIUM
SIZE WORKS.

The DeLaval Company manufacture and sell the DeLaval
Separator, which separates cream from milk by placing the milk
in a steel bowl, which is turned at a rate of speed sufficiently great
to cause the lighter cream to be separated from the heavier other
constitutents of the milk by centrifugal action.

The office of the DeLaval Company is located in New York
City, while the factory, employing about 150 men, is at Pough-
keepsie, New York. The commercial books of the DeLaval Com-
pany are entirely separate and distinct from the factory account-
ing system.

Some factory accountants have promulgated a theory that
there is a mysterious and occult relation or sympathetic inflec-
tion existing between the factory accounts and the commercial
accounts of a firm which produces the merchandise which it sells.
As is shown by various examples given in this book, the commer-
cial books of a factory may be very few and extremely limited in
their scope of record, and as shown by this example of the De-
Laval Company's system, the factory accounting system may be
entirely separate from the commercial accounting, the two having
no relation or connection or modifying influence whatever on each
other. In general terms it may be said that there is no well-defin-
ed connection between the factory accounting system and the com-
mercial accounts, of any concern which is both maker and seller.
It is true that under some systems of accounting, some of the fac-
tory accounts are carried into the commercial bookkeeping de-
partment. There seems, however, to be no real need for any such
mingling of the factory accounting and the commercial account-
ing of a manufacturing and selling business, nor is any useful
purpose served by such a procedure which cannot be perfectly
obtained when the cost accounts are wholly separated from the
commercial accounts.

Under the DeLaval system the factory accounting is as whol-
ly separate from the commercial accounting, as if the two divi-
sions of the business were in wholly diflferent and independent

THE COMPLETE COST-KEEPER. 53

hands. The factory accounting is kept by itself at the works in
Poughkeepsie, while the commercial accounting is performed at
the New York office wholly without reference to the factory ac-
counts, the factory being treated precisely as if it were an inde-
pendent productive concern, having for its sole customer the New
York office. It is true that production orders in gross are origin-
ated in the New York office, and by the New York office trans-
mitted to the Poughkeepsie factory. These are neither more nor
less, however, than purchase orders for goods ready for shipment,
precisely the same as the New Ydrk office of the DeLaval Com-
pany might address to any independent manufacturer. The pre-
cise manner in which transactions are conducted between the New
York office and the factory, is as follows:

The New York office makes and sends to the factory specific
orders for completed machines and for repairs, at specified prices,
these prices being paid by the New- York office to the factory in
exactly the same manner as if the factory was a wholly indepen-
dent concern, with the single exception, that the factory mana-
ger's checks drawn on the factory's own bank account in Pough-
keepsie, must be signed by the company's Treasurer, at the New-
York office. The prices which the New York office is to pay the
factory for the various styles of machines manufactured, and the
piece prices of details and repairs, are fixed each year from the
records of the factory cost books for the previous year, and the
New York office keeps the factory's Poughkeepsie bank account
good. Should there be a deficiency in the factory receipts at the
end of the year, this deficiency would be made up by the New
York office. Should the factory have made a profit, that is to say,
should the factory's Poughkeepsie bank account show a sur])lus
at the end of the year, this surplus would be returned to the New
York office, or would stand as a credit to the New York office.
I'rom this it will appear that there is no accounting relation Ik»-
tween the commercial books and the factory Ixxiks of this con-
cern. The factory is treated as a trusted servant, furnished with
money against its production, and detailed to the performance of
special duties with limited discretionary powers, at a point so far
removed from the immediate control of the master as to rentier
)ther than general direction impracticable.

54 THE COMPLETE COST-KEEPER. -

The Factory Accounting only will be detailed here.
Officials of DeLaval Poughkeepsie Factory.

General Factory Manager.

Superintendent.

Assistant Superintendent.

Foreman of the Machine Shop.

Foreman of Assembling and Repairs.

Rough Stores Keeper.

Finished Stores Keeper.

Shipping Clerk.

Stores C'lerk.

Cost Clerk.

Time Clerk.

General Manager.

All production orders originate in the New York office, ex-
cept the 'T" orders as hereafter specified. The New York pro-
duction orders are transmitted to the General Manager, and are by
him transferred directly to the factory superintendent without
mark. The General Manager has the direction of shipments, giv-
ing orders to the shipping clerk, also attends to the general busi-
ness of the factory, keeps up the insurance, and authorizes all
bills which are to be presented for approval to the Board of
Directors in New York, and places workmen's pay totals on the
pay envelopes. All checks drawn by the factory against its
Poughkeepsie bank account are made as directed by the General
Manager, and are forwarded to the Treasurer at the New York
office for signature.

The Superintendent.

The Superintendent hires and discharges all factory em-
ployees and exercises the usual duties of general labor super-
vision. The Superintendent originates purchasing orders and is
the Acting Purchasing Agent, purchase orders made by the Su-
perintendent going to the General Manager for signature. He
also examines the weekly production report made by the cost
clerk, and directs the general course of the factory production.
The Superintendent makes a fortnis^htly report of assembled ma-
chines to the General Manager, who also receives a daily report
made by the foreman of the assembling department.

THE COMPLETE COST-KEEPER.

:>:>

No.

The DeLAVAL SEPARATOR CO.'S WORKS.

This Company will only be retponsible for order* given on this form.
Poughkeepsie, N. Y.

Please ship at once, per

Send Invoice ^ving the number of this Order with
Shipping Receipt, promptly.

The DeLaval Separator Co.

Please acknowledge receipt and state
when you will ship.

Purchase Order Form.

Made by Superintendent, countersigned by General Manager, with stubs^ kept at factory.

Assistant Superintendent.

The Assistant Superintendent originates factory production
orders under direction from the Superintendent, keeps the Shop
Production Order Book, and checks up all invoices of rough
stores as received, as he is the rough stores room keeper, and in
this capacity delivers all rough stores to the workmen on presen-
tation of "Work" Cards, and also advises the Superintendent as
to purchases required. The Rough Stores Room Book, debit and
credit, and the gross time record are kept by the Assistant Super-
intendent's clerk, who is located in the Assistant Superintendent's
office.

Foreman op the Machine Shop.

Besides his reisfular duties in the supervision of labor, the
foreman of the machine shop, upon the receipt of a "Report Card"
filled by the Assistant Superintendent, proceeds to fill a "Work
Card" bearing the same number as the Report Card.

THE COMPLETE COST-KEEPER.

WORK CARD.

THE DeLAVAL separator WORKS.

No.

Mr.

Piece No. , .

Name .

Time. .

Hrs.

Finished.

A. V. H. 6-98.iom.

WORK CARD.

This card is first filled by the foreman, checked by the stores keeper when the required

rouRh stores are delivered to the workmen, and finally completed by the time stamp,

affixed by the machine shop foreman. At the end of each week all of these

cards go to the cost clerk, who checks prime cost book entries made from

the stores ledger by these cards. The cost book labor record la

made from the time book, and checked from work card time

stamps, on the order card. These cards are finally fited

in bundles on the shelf at the back of the cost

clerk's desk, as shown in the engraving,

each week. This card is 3^ inches

wide by sJi inches high

stiff stock.

THE COMPLETE COST-KEEPER. 57

This Work Card has next below its heading six lines for labor
time entries, which are made from the time stamp records placed
on the card by the Foreman of the Machine Shop, the card being
dated by the clock time stamp as soon as the workman receives the
rough stores it calls for from the rough stores keeper. When the
work is completed the machine shop foreman presents the work
card to the Assistant Superintendent, stamped with the record of
completion time by the clock time stamp, the order being charged
with tl.e total working time between the two dates. This time
computation is made and recorded on the time book by the Assis-
tant Superintendent or his clerk, the workman not being called
upon to make any lal)or time record. On the Work Card is a
blank space upon which the machine shop foreman notes the par-
ticulars of rough stores required to begin work on the order. The
machine shop foreman has no duties in connection with the Fac-
tory Accounting other than the filling of this Work Card, as
described.

The DeLaval factory is so arranged that the rough stores
room is located at one extremity of the building. From the rough
stores the work in progress proceeds through the machine shop to
the finished stores room, which is widely separated from the
rough stores room, and is under the charge of the Finished Stofes
Keeper, who receives finished factory detailed product, and de-
livers the same to the assembling and repairs department on duly
authorized "Work Cards." The finished stores keeper keeps a
finished stores book, debit and credit, each balance showing the
number of a certain finished part in store.

F.vcTORv Production.
Factory Production begins on a requisition made on the New
York oflfice order book, each leaf of which is printed in three sec-
tions, first a stub, retained in the book, then a perforated cross-
line and the original order filled at the New York oflfice and
manifolded on the reverse side of the third section of the leaf,
there being a second cross-line of perforations in the order book
page, so that the manifold order blank can he turned under the
original order blank, permitting the in.«;ertion of a carlion paper
between the two. and thus making the filling of both orders at
once possible, all as shown in the reprwluction below :

58 THE COMPLETE COST-KEEPER.

(Stub retained in N. Y. Office
Order Book.)

No 190

To be shipped

(OriRinal Order made by N. Y. Office ; a duplicate-
carbon copy is sent to the Poughkeepsie shop.)

(POUGHKEEPSIE WORKS.)

No New York, 190

Ship

Bv Via

Via

Shipped

Ordered by

NEW YORK OFFICE REQUISITION ON FACTORY.
Size, 6 inches wide by 5 inches high. This form is used for both new work and repaii%.

By use of this ingeniously-devised order book the New York
office has a stub duplicate of each shop order transmitted, and
the factory has an original office order and a manifold fac-simile
duplicate; the duplicate is compared with the original order and
is. then returned to the main office, thus certifying the receipt of
the order, while the manifold serves as a check on the stub in the
New York office order book, so that no misunderstanding of or-
ders between the office and shop is possible.

The New York office requisition goes first to the General
^lanager of the Factory, and is noted by him and then forwarded
to the Superintendent, and is filled from finished stores if possible;
if not in stock the Assistant Superintendent makes out a "Report
Card'* in conformity therewith, and transmits the same to the
foreman of the Machine Shop.

The Report Card has three principal divisions, the first head-
ed "R. M.^^ meaning Rough Material, or Rough Stores, under
which the stores drawn from the rough stores room are noteH.
The middle division is headed "F. M.," meaning Finished Mate-
rial, or finished stores : this division is checked by the Inspecfor,
when the report card is delivered to him with the finished order,
and the report card then passes with the completed work to the
Finished Stores Keeper, who checks each item with his receipt-

THE COMPLETE COST-KEEPER,

REPORT CARD.

Shop Order THE DeLAVAL SEPARATOR WORKS.

No. of Part,

R. M 1

F. M.

Date.

Stock.

Rec'd by

Date.

Good

Bad.

Rec'd by

DMa. Good. Bad.

Rec'd hy

...

.... !l

A. V. H. 11.97.3111.

REPORT CARI>.

This " Report Card " is the prmluction order. It i» deli«ere<l witti the fini»hed work whlcb

to call* for to the ins|ieclor, who records hU ln*!>ecti«iii ihereupoo, and then aeade U

with the int pected work tu the 6nii»hed alores keeper, who »end» It tu the

ant Kuperintendent. who utampa il with hi» liatin^ •Uinip in the right kaad

comer on the Imck. and checks the order on the order Itook a* cum.

pleted, and then forward* the report rani t<» the otat keeper,

who checks it with hi* prime ct>«l Ixiok, and •tamp*

It with hill official sump, and the re|M>n crrd

la then filed away on the vhelf at the bark

oC the co»t clerk'a de«k. a« »huwn la

the enKravlr.K- lltle card la V,X

inche* wide by s *^ *^

Inches hiKh. atlfl

•low!*.

THE COMPLETE COST-KEEPER.

ing signature in the extreme right-hand column ; the report card
is then returned to the Assistant Superintendent, thus notifying
him that the order is completed and placed in the finished stores
room. The Assistant Superintendent then forwards the Report
Card to the Cost Keeper.

When the Machine Shop Foreman receives a Report Card
from the Assistant Superintendent he fills a ''Work Card" in ac-
cordance therewith, specifying rough stores required, and "gives
this shop order to the workman who is to perform the production

Shop Order Rack, under Assistant Superintendent's Office Win-
dows, IN Machine Shop.

This rack is made with wooden frame, vertical cross-rails, and back, and fitted with steeply
inclined sheet zinc partitions, so that each Order Card can 4rcp into its own sep-
arate receptacle just far enougjh to leave the first horirontal card di-
vision fully exposed. This enables either thi Assistant
Superintendent or the Machine Shop Foreman
to readily ascertain wliat orders arc
in work by inspection of
tlie Shop Order
Card Rack.

THE COMPLETE COST-KEEPER.

DATING CLOCK STAMP.

The notched card gaufres on top uf thlj clock were applied at the DeLavat Shops, and the

various notches locate the time stamp impression properly on the various

forms requiring a rtate.

labor, who presents the work card to the rough stores clerk and
obtains the needful stores, and then presents the work card for
the clock time stamp, which places the order in work.

The Work Card is then placed in a rack, close outside of the
Assistant Superintendent's office window, in the machine shop,
where it remains either until the order is completed or until the
end of the week, thus exhibiting: all orders in work at a glance.

The workman d'^es not have anything: in the way of an ordi-
nary time card, and does not make any time record. All work-
men enter the factory at one gate, passing the Assistant Superin-
tendent's open window, inside the building: the dating clock
stamp is located at the right of this window.

On each side of the clock window there is a time and pay
envelope rack, the top reaching up nearly to the window sill,
as shown in the illustration.

THE COMPLETE COST-KEEPER.

STAMP WINDOW AND TIME CARD AND PAY ENVELOPE RACKS.

These racks have wooden frames, backs and vertical cross rails, with steeply inclined zinc

partitions, giving each envelope a compartment into which it slips far enouij;li to

leave only the top division exjjosed, same as previously described for

the Shop Order Card. The rail in the foreejround makes

'the workmen advance in single file.

On Monday morning the left-hand rack contains a number-
ed pay envelope for each man in work. The men on entering the
shop pass the stamp window from left to right, see illustration,
each workman as he passes taking the envelope bearing his num-
ber out of the left-hand rack. The vertical rails of this rack are
faced with brass strips, on which the compartment numbers are
stamped in conspicuous figures as shown in the enlarged illustra-
tion of the Pay Envelope Rack.

The workman presents his envelope at the stamp window
where it is stamped with the hour and minute, the notched gauges
on top of the clock giving the impression location properly. The
workman then places his stamped envelope in the rack on the
right hand of the window, and passes on into the factory. If a

THE COMPLETE COST-KEEPER.

Time Card and Pay Enveix)pk Rack, Enlarged View,
Showing Constriction.

workman leaves before quitting time he takes his envelope out of
the right-hand rack, has it stamped at the window, and places it
in the proper compartment of the left-hand rack. Workmen leav-
ing the shop at regular hours do not touch the envelopes. Dur-
ing the noon hour the envelopes are transferred from the right-
hand rack to the left-hand rack. At about five o'clock in the
afternoon the time book is made up from the envelope time stamp
records. It is not needful to stamp the regular-hour leaving time
on the envelopes, as if the envelopes are in the right-hand rack
at quitting time the workmen have been present. From these en-
velopes the Assistant Superintendent's Clerk, who acts as Rough
Stores Keeper and Time Gerk, enters the total day's time for
each workman on the Time Book, as described later.

The time payment totals are taken from the weekly time
book, the gross amount being transferred to the upper left-hand
comer of the pay envelope lu' tUo General Manager, who is the
Cashier of the Factory.

2 ;/£ COMPLETE COST-KEEPER.

THE DfXAVAL separator COMPANY.

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TIME AND PAY ENVELOPE.

Functions fully described elsewhere. This is Manila envelope, 2^8 inches wide by $%
inches long, having a gummed flap at one end. Tliis card is shown as belonging to
William Hunt, workman No 27. 1 hese cards have four-line time record spaces for
■each of the six working days of the '.veek, only two of which, recording entering time>
are commonly filled, and as stamped by the clock stamp this envelope shows that Huut
worked every day of the week from 7 a. m. and inferentially to 12 m., and from 12.30
p.m. inferentially to 5.30 p. m., and earned $10.03 by his 60 hours labor. The back
of this envelope is printed as follows : '• Employees must please have their envelopes
stamped by their foreman when desiring tj leave factory in working hours." " Em-
ployees will please not have their pay envelopes stamped for entry unless they remain
north of the ticket window." *' All are expected to be in their places and commence
work when the whistle blows." " Any error in time or money must be reported to the
Superintendent Thursday morning between 8 and 9 o'clock." These envelopes are filled
on pay day and passed out of the superintendent's window to the workmen as tliey
leave the factory. The day workmen do not sign a receipt as the time stamp records
are affied under their own eyes.

The total day's time is entered in one line on the time book
by the Assistant Superintendent's clerk as stated.

The Time Book form covers the two pages, each 8J inches
uide, making a total of 16 inches writing width, ruled and headed
as shown.

The time distribution on the time book is made by the Time
Keeper from the records of the shop cards. The totals must ba-
vclope time stamp records. Space enough is left between the
l?.nce the total pay roll hours for the week, made from the en-

THE COMPLETE COST-KEEPER.

Week Ending Jan. 31. 190

Workman.

De«:ripUon. 1 No.of Serial
*^ j Part. Number.

Shop.

W. H. Morgan .

223

tSl

Mfg.

Baby 2. Housing 430

" Spur wheel 4^*1

H. B. cranks 771

Shop

Sam'l Brown . . .

Baby 2. Skim milk tubes 507

P.VV.

" " Spindle Guards 420

P.W.

" " Can stands 533

P.W.bal.... 533

Spin'le Gu'ds " 429

160

28
24
24
28

224

•

Time Book Form— Left Hand Page.

iXmble paf^e, each page S}4 inchrs wide, giving 8 inches writing width, by T3>« inches
high. This form is filled, and is intelligible without special description.

gross time lines opposite each workman's number in the time
book to give one line for each separate order number charges
likely to be made during the w eek ; the workmen's numbers are
applied to the time book left-hand column by a consecutive num-
bering hand stamp, The Bates Automatic Numl>ering Machine,
made by the Bates Manufacturing Company, New York City.
Some of the workmen are employed continually on the same ope-
ration, hence their complete time record, gross and detail, would
require only two spaces on the time \yo6k; others may require five
or six lines, owing to the different orders worked on. The time
keeper is aware of the nature of each workman's cmplox-mcnt.
and gives sufficient space after each workman's number to serve
the purpose of a complete time distribution record.

THE COMPLETE COST-KEEPER,

Week Ending Jan. 21, 190

10
10

T.
IP

IP
6
2

Hrs

J2.
26

9
22

p. W.

O.T.

Total.!

Rate.

Abstract.

Amount.

"^S

9144

26
2

9
22

...

...1...

I
3

".I

44!

7
3

' 1
1 . . . ...

10
IP

IP IP

-2-

—

28i

2.5Q ....

14
....

8
2

8p
99
47
35
24

IP 85

1 i

2p!

lof

IP 0?

...1

(

.35
2.24

' ' .

Time Book Form — Right Hand Page,

Much of the work in the DeLaval Factory is at piece rates,
and the present disposition is to increase the proportion of piece
work.

Workmen's piece contracts are made on piece rate fonris.

This card is shown as filled, and needs no description. Upon
completion of contract the card goes to the Cost Clerk, who files
it convenient for ready access for two years, which is considered
the limit of probable reference time.

The DeLaval Separator, or milk-and-cream-separating- ma-
chine, requires from 6,000 to 7,000 revolutions per minute of its
eflFective member — a spindle carrying- a steel bowl — and necessi-
tates construction of the most accurate description, which must
always be kept in perfect order. Hence much of the work is re-
pairs, which are all made at hour rates by the workmen, and
charged at hour prices to the customer.

THE COMPLETE COST-KEEPER.

D^te, Mar. 29, 190 Part No.
Workman's Name, Samuel Melgaard.

501

Order No. 4

1 Quantity, 80 Rate, 20 j

16.00

Week ending

Hours.

Per Hour
Rate.

1062 '

■ 1

April 3.

.3 :

Bal.

\ 538

1600

1 _ i

Rec'd Payment, Samuel Melgaard

00 I

PIECE RATE CONTRACT FORM.
This card form is 7}^ inches wide by 6 inches high. The card is shown as filled out and re-
ceipted by the workman's signature. The i)iece workmen have a ><rcekly hour pay
rate up to 20 cents per hour, which is paid on the regular i)ay day, the piece
rate balance being paid at the next pay day following the completion
of «he contract. In the card shown the hour rate was 18
cents, and Melgaard received $io.6a vn regular pay
day, and had a gain of $5.38 over his hour
rate due him when the job was completed.

A filled-out Repair Statement is here given.

Repairs are constantly in progress. The very great velocity
given to the bowls demands the utmost perfection of details at-
tainable, and the maciiines must be kept in perfect order to pre-
vent a costly waste ot dairy product.

Repairs are made in the Assembling Department. A Report
Card and a corresponding "repair card," red, are issued for each
repair order, same as for new work, and in addition a red "Sum-
mary Repair Card" is made out for each order, on which is re-
corded the name and date of labor performance of each workman
doing any work on the order, the entries being made by the Fore-
man of the Assembling Department.

To hasten repairs, machines out of order are often shipped by
the owners direct to the factory at Poughkeepsie, and in this case
the Assistant Superintendent may fill out a "P." (Poughkeepsie)
order with a manifold duplicate, and, of course, with the regfular
report card and red work card, and red summary card.

68 THE COMPLETE COST-KEEPER.

(POUGHKEEPSIE WORKS.)

No. 557. l42?i[ 503. New York, 3/3/00

Ship

To N. N. Winston,

Smith field, Henry Co., Ky.
By Express Via Am. X.

Repair Baby No. 2 Bowl No. 19,547— your reports 4204 and 4214.

No. 509 Bowl Spindle 2.90

' ' 600 ' ' Rivets 10

" 442 Top Bearing *. i.co

" 507 Milk Tubes i.oo

' ' 506 Cream Screw 10

" 510 Tubular Shaft 1.50

" 513 Bottom Disc 10

" 512 Intm'd Disc 15

Bowl Re-tinned i.oo

18^,^ Hours at 40c 7.50

15-45
Expressage in 65

16.10
Shipped by

March 16, 1S97.

Bowl Re-balanced.

REPAIR STATEMENT, FILLED IN.

Repairs are always somewhat difficult to deal with in Fac-
tory Accounting, and these various DeLaval forms seem to cover
the situation effectively, and appear to be available without much
modification for repairs in general. The Summary Repair Card
is extremely important ; the Foreman records the workman's name
on the summary card as soon as he is set at work on the corres-
pondingly numbered repair order, thus making it certain that no
labor charge is overlooked in making up the repair statement.

The regular Repair Order is made by the New York office
and forwarded by mail same as New York order for regular fac-
tory production, on receipt of order from the customer.

If in great haste, the repair order may take the form of a
short telegram from the New York office, the machine to be

THE COMPLETE COST-KEEPER.

Shop Order.

Card.

THE DeLAVAL separator WORKS.
(Repair Card.)

No.

Bowl or Mach. No

Style

Report

Office Order

Operation

Time.

Hrs. Min.

Parts and Material.

Quantity.

Number.

Kind.

Finished.

A. V. H. ii>97.5m.

REPAIR ORDER FORM.

Made by the foreman of the atsembllng department 00 receipt of repaira order. Thia card
is 4 inches wide by 6% inches hi](h, stiff stock. Color, red.

repaired having been shipped by the owner direct to the factory;
in the latter case the repairs are made on a **P*' order, originated
by the Assistant Superintendent. This repair accounting system
seems to he suflFiciently elastic to cover all ordinary repair condi-
tions, and is therefore worthy of careful attention. As stated.

THE COMPLETE COST-KEEPER.

THE D

Report

Shop Order

elaval separator works.

Summary Repair Card.
Office Order

Bowl or Mach. No Style

Card No.

Name.

Date.

SCo5.98-3m

SUMMARY REPAIR CARD.

This card is used to record the name of each workman on each repair order. Itis filled by
the repair department foreman, and goes with the completed repair order to the ship-
ping clerk, who makes all bills, so that he will be sure not to omit any
charges against a repair order. The shipping clerk obtains time
charged from the shop order. From the shipping clerk these
cards go to the cost clerk, who files them away. Size,
4 inches wide by 6 inches high. Color, red.

THE COMPLETE COST-KEEPER,

So. P 2128 Rep S.O Po'kecpsie

By Via 1

No.

Pric

No.

Price

•

....I....

, ,1

]

....

1 . .

....j....

i i

... .1

■ 1

....

....!

....

POUGHKEBPSIB ORDER.

Manifold duplicate repair or other special order made by the factory at PD«ifhli«epale In re>

•ponte to tele^raiii generally. These order blank* are made up in pads. The orfg.

inal is retained at the factory, and the manifold is sent to the New York office.

the repairs arc made in the Assembling Department. This
department delivers two reports daily to the General Superinten-
dent, one report of new machines assembled, and one report of
repairs. These daily totals are separately aggregated, new work

THE COMPLETE COST-KEEPER.

Assembling Department.

Date, January 20, 190

i^SSr.

Style.

Part No.
Serial No.

Quantity.

Delivered to

178

Bi mach.

156543
4
5
6

I
2

156316

7
8

9
20

I
2

153982

= 10

146

B2 mach.

■

127

AiB. mach.

= 10

= 4

Signature, B. R. Wright.

DAILY "department RECORD FORM.

Made by the department foreman, contains a production record of each department, made
for the information of the cost clerk and general superintendent. If a transfer is
recorded, tor instance as of finished machines from the assembling depart-
ment, to the boxing department, the "Delivered To" column is filled
by the check or signature of the receiving department fore-
man. This department record is sent daily to the cost
clerk, and by him held for information of the
' superintendent. The size of the form
is six inches square.

and repairs, and sent to the sales department of the New York
office once in two weeks, where they are submitted to the Board
of Directors. This keeps the Sales Department informed as to
production, stock on hand and repairs made. These daily reports
are made on what are known as "Department Record Forms."

THE COMPLETE COST-KEEPER, 73

Report. s8.

Shop Order

Poa)(hkeepsie, N. Y.,
Office Order

Arrived from

per

*' report" form.

Stub book, kept by finished stores keeper and filled long hand, triplicate, by him on receipt
of machines for repair. The stub is kept on the book in the finished stores room.
Copy No. I goes to the New York o^e. which then makes a factory order for re-
pairs needed. Duplicate No, a is pinned to the repair order until the work
is completed ; then duplicate No. a goes to the cost clerk's office, and
is filed tor reference. This form might be made to manifold,
and the title might well be "Record," instead of "Report,"
as "Report Card " is used to designate what is vir-
tually the production order. Page of 3 report
iorms is t6>i inches wide by 3 y.i6
inches high, making the forma,
when separated, about 5H
inches wide by s 7**6
inches high.

As previously stated, machines to be repaired are commonly
shipped directly to the factory ; a letter of advice to the New York
office should, of course, be forwarded by the shipper, notifying
the New York office of the shipment to the factory. To avoid
delay in case the New York office is not so advised, and to advise
the New York office, a Report form is used, consisting of a stub

THE COMPLETE COST-KEEPER.

and duplicate forms i and 2 on each page. This form is i6f
inches wide x 5 7-16 inches high, the stub and the two dupUcates
being printed alike, except as to the "No. i," and "No. z'' and
each taking, when filled by the Finished Stores Keeper, the same
number in blue ink, applied by the Bates numbering stamp.

Work Card Filing Cabinet
Photographs of the DeLaval office interior are reproduced
here to show the small storage place required for card form re-
cords, and the great ease of reference, owing to the small size and
light weight of the card volumes produced by the use of tem-
porary binders, as with the "Work Card" cards, or by cases hold-
ing one hundred cards each, as with the "Report Cards."' In both
instances, since an even hundred of the consecutively numbered
cards, arranged in numerical sequence, fill each volume or case,
any individual number can be instantly found without reference
to any index whatever. All of this card filing as practiced in the

THE COMPLETE COST-KEEPER,

Cost Keeikk's Desk and Shelving on the Wall Behind It.

DeLaval Factory Accounting room is very cheaply installed, the
appliances being of the simplest description. ^^

The first of these DeLaval office interiors, shows the Work
Card filing cabinet.

The Work Cards when returned to the cost keeper, are made
up in l>ooks of loo cards each, by punching with the "Shannon
file'* punch, and binding in linen backed white paper covers, with
McGill's brass fasteners. All work cards since the factory began
in 1892 are filed in this small cabinet, which still has plenty of
room to spare. As each little volume contains 100 of these shop
order cards, consecutively numbered and indexed on the back,
and since the volumes are arranged in sequence on the cabinet
shelves, any work card can be instantly found, and can Ik? exa-
mined with only a very small part of the labor which would be
needful if these work cards were kept in l)ooks.

Resides this little work card cabinet the cost keeper has be-
hind his desk, against the wall two long shelves, with a short
shelf undenieath at the left-hand, for storing his forms and the
correspondence relating to orders, all as shown in the engraving.

yt THE COMPLETE COST-KEEPER.

The upper shelf and part of the second shelf support Am-
berg letter files which contain all the correspondence relating to
shop production from he beginning in 1892. The short shelf at
the extreme left, under the second shelf, contains pasteboard cases
covered with black cloth, and indexed on the back, each contain-
ing 100 "Report Cards," or Production Orders, the lot including
all issued since the beginning, in 1892. Below this shelf is the
letter copying press table, in the corner of the room.

Right Hand End of Cost Keeper's Shelves, amd Card Form and
Stationery Cabinet in Which New Supplies are Kept.

This engraving shows the Cost-keeper's Shelves, with Am-
berg letter files, and the ''Work Cards," checked on cost book, and
filed away in bundles, and the upper part of a Cabinet which con-
tains new cards and printed forms and general office supplies.
This cabinet, the work card cabinet, and the three shelves shown,
contain all factory orders and card forms and correspondence
since 1892, that is to say for seven years past, ready for instant
reference. The space occupied is very small, although no regu-
lar card filing cabinets arc in use.

THE COMPLETE COST-KEEPER.

Cost Keei'Kr's Desk.

This engraving is a reproduction of the Cost-keeper's Desk,
as he was working at it the moment before photographing, mak-
ing up the labor distribution on the time books.

The large upright "Pay Table" is made on white paper, ce-
mented to a battened board 3-16 inches thick, and varnished with
white shellac. The sliding T-Square with the down-hanging tri-
angular blade, has its beam rabbeted to the top of the board, so
that it can be moved along without falling off. The "Pay Table"
was filled in by hand in black ink : the top line of hour rates is
filled from 7 cents to 33.J cents, by half-cent advancements, 7. 7J,
8. 8J, and so on : the right and left-hand vertical columns are hours
and fractions; the top space is J hour, followed downward by |
hour. }. I. 2, and 3 hours, and so on. down to 60 hours at the
bottom line. This complete flat pay table and the T-square blade
rate indicator together constitute a very fast and a certain hour
and rate pay total mdicating apparatus, and arc considered wholly
satisfactory. The two smaller rate cards, just to the left of the

78 THE COMPLETE COST-KEEPER.

glass ink stand, are two short-week rate cards, slipped into a
groove in a movable wooden foot-block, so as to stand upright.
These cards, of which the cost-keeper has a large number, are
hand-made one-rate cards, shellac varnished, for one, two, three,
four, and five days, for all hour rates paid in the factory, one
card for each rate, and are easier to use for short weeks than the
large universal pay table with its movable T-square blade indica-
tor. The left-hand inclined surface of this T-square blade is
graduated in hour-numbered spaces, corresponding with the ex-
treme right and left-hand column numbers of the pay table. These
are extremely simple, cheap, and efficient aids to time and rate
computations, light, easily handled, and durable.

The bound books kept in addition to the card records, are as
follows :

Rough Stores Book, kept in rough stores room, debit and
credit.

Finished Stores Book, kept in finished stores room, debit and
credit.

Time Book.

Prime Cost Book, kept by Cost Clerk.

Cost Book, kept by Cost Clerk.

Piece Work Book, kept by Cost Clerk.

Invoice Book, kept by Cost Clerk.

Shop Order Book.

The Rough Stores Book receives debit and credit entries of
all rough stores, receipts, and disbursements. It is kept by the
Rough Stores clerk. The balances show rough stores on hand.
The cost clerk makes all original entries from this book, and
checks these entries by the "Work Card" entries, made when the
rough stores were delivered to the order, thus making the cost
keeper verify all entries in this book, kept in the Rough Stores
room,
i Finished Stores Book. This is the same as the Rough Stores

Book in form and size, and is kept in the finished stores room,
debit and credit, and verified by the cost clerk in checking Assem-
bling room and repair charges.

The Time Book. This is a record of labor costs and distri-
bution.

THE COMPLETE COST-KEEPER. 79

The Prime Cost Book. On this book the cost clerk enters
the weekly totals of material and labor, no matter whether the
order is complete or incomplete. The materials totals are taken
from the stores ledger, kept by the stores clerk, and the time is
taken from the weekly totals of stores-cost and labor-cost and
charged to the proper order numbers.

Cost Book. This book is arranged to show comparative cost
totals for the same production at different times. This record is
of the highest importance, and shows at a glance whether pro-
duction cost rises or falls.

Piece Work Book. This book contains weekly reports of
piece-work labor cost, quantity produced, and balance due work-
man over his hour rate payment ; these records give piece rate
production cost fluctuation, and if constant in direction show a
rise or fall in piece rate production cost.

Invoice Book. This book carries a record of invoices re-
ceived, and the individual accounts for each supplying firm, and
invoice totals in one-line entries, all for reference merely.

Shop Order Book. This is a very important book of refer-
ence ; as it is shown filled no detailed description is needed.

The following list of card forms used shows at a glance the
small number of forms required to eflfect a precise and convenient
cost-keeping system in an establishment such as has been de-
scribed in this chapter, and when the detailed nature of the results
is considered it cannot be said that the system is complicated or
cumbersome.

The list of official duties also shows how, with but one ex-
ception, the work of cost-keeping is made to fall in with the regu-
lar duties of the various departments.

New York Office Requisition on Factory.

Report Card.

Work Card. White.

Repair Card. Red.

Summary Repair Card. Red.

Time and Pay Envelope.

Report.

Purchasing Order Blank.

Repairs Received, triplicate form.

P. Order.

THE COMPLETE COST-KEEPER.

Q "
PC o
O .

m
1

if
'>

;^
e

^'
u

PQ
'J2

N O

P, M

Pi <

c ■

^ §\ A

3 <u

O PlH

J3 (U

< W 03 CQ

P^ O

'I
PQ ^

M c^

a. .

^ PQ

tn O

vO OO
ON vO

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r^ r>> o

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rt- IT) vO r^ 00

•japJO d
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•jjoda^

CO O

THE COMPLETE COST-KEEPER, 8l

82 THE COMPLETE COST-KEEPER.

List of Officials' duties performed, bracketed where executed
by same individual.
General Manager.
Superintendent.

{Assistant Superintendent.
Rough Stores Keeper.

Foreman of Machine Shop.

Inspector.

Finished Stores Keeper.

Foreman of Assembling Room.

Keeper of Time Book.

Shipping Clerk.

Cost Keeper.

The Cost Keeper is the only official who could be dispensed
with if costs were not kept. All of the others are necessary for
duties not connected with cost-keeping.

The combined workman's time record and pay envelope ad-
mits hands to this factory much more quickly than might be sup-
posed. The time stamp can be applied very rapidly indeed, and
the workmen select their envelopes from the "out" rack, have
them stamped at the window and pass on, placing their envelopes
in the "in" rack, with but little more hindrance than occurs when
brass checks are used. The workings of this combined time re-
cord and pay envelope are considered wholly satisfactory by the
DeLaval officials, and it seems very well adapted to meet the re-
quirements of the situation, where not more than about 75 work-
man are required to pass one window,

A COMPLETE SYSTEM FOR A GENERAL
IRON WORKS. .
By R. F. Van Doorn.

The firm of Struthers, Wells & Company, of Warren, Penn-
sylvania, was established in 185 1. It is engaged in the manufac-
ture of steam and gas engines, boilers, tanks, stand-pipes, etc., etc.
The firm is constituted in the form of a simple partnership, the
executive officers, however, being ranked as is usual with corpora-
tion officials. It is managed by three of the partners, who act, re-
spectively, as Managing partner, Superintendent, and Treasurer.
The Managing Partner directs the policy of the firm. The Super-
intendent performs the duties of General Manager, and has charge
of the entire working routine of the establishment in all branches.
The Treasurer has charge of all the financial details.

In presenting the cost system employed at the works, it is
needful to include the entire system of accounting employed, be-
cause in the consideration of production-cost the factory manager
must needs deal with both the flat costs of production and the gen-
eral charges and expenses. A certain line of articles may show
a satisfactory flat cost when compared with the selling price, but
in order to determine the value of this product as a "money-
maker," all the expenses and other external costs which are charge-
able to this line of product must be determined and applied. This
system of accounting seems, notwithstanding the number of forms
used, to be carried out at low cost when the information obtained
by its operation is considered.

The cost-keeping will be described first, and will be followed
by the accounting system.

In general terms, a cost-keeping system is valuable exactly in
proportion to the minuteness of detailed information which it
aflfords. The manager is concerned, finally, with gross results, but
he can change those gross results only by modifying the details
of his practice, and before he intelligently can change practice de-
tails he must know his costs in detail. This naturally leads to a
multiplication of sub-production-order divisions, and if all these
orders have to be transferred to account books there evidently

84 THE COMPLETE COST-KEEPER,

must be a point somewhere, beyond which the clerical-labor ex-
pense will render the obtaining of more minutely divided costs
uneconomical.

The central idea of this system of factory accounting is to pro-
duce a composite collective cost record for each production-order,
which shall contain the entire history, chronology, and industrial
record of the order's execution, combining this complete history
finally in an integral document, readily filed and always accessible.
It is, however, essentially a card system, and the peculiar feature
which makes it both unique and efficient is the form of the "order
card,'' or production-order blank form. Instead of being a flat
sheet of suitable size, the order blank is folded in the middle, mak-
ing a folio cover, within which sub-production-order cards may be
secured, thus giving the possibility of amplifying detail to any
desired extent, while beginning with a uniform blank of conve-
nient size and of universal application, which is always retained.

It must be remembered that the precise form of any blank
in a cost-keeping system is of the greatest importance, and the fact
that these forms as shown are the result of years of use, during
which every one has undergone repeated alterations, renders them
worthy of the closest examination. The general conception of a
cost system first must be correct, and then the exact form of a
card which best fills its function in that system must be obtained by
trial. Hence the value of the information here given, each indi-
vidual form being so treated as to show its exact content and ar-
rangement.

Production begins with the origination of the production-
order, and the production-order will be followed through the cost-
accounting to the point where it reaches the book-keeper and so
becomes an item of the commercial accounting, thence through
the commercial-accounting system to the conclusion. During this
exposition all the collateral acts bearing upon its growth and opera-
tion will be considered under the general heading, Exposition of
Cost System. From the time it enters the hands of the book-keeper
and falls into the commercial accounting, the original production-
order and its resulting sub-production-orders will be considered
under the general heading. Exposition of Commercial-Accounting
System.

THE COMPLETE COST-KEEPER. 85

Forms Used.

Production-order record-book, form A.

Boiler-shop boiler-production-order, forms B, C, D, and E.

Boiler-shop general production-order, forms F, G, H, and I.

Machine-shop steam-engine order, forms J, K, L, and M.

Machine-shop gas-engine order, forms N, O, P, and Q.

Machine-shop general production-order, forms R, S, T, U.

Foundry production-order, form V.

Smithy production-order, forms W, X, and Y.

Black cost-cards, forms AA and AB.

Green cost-cards, forms AA and AB.

Pattern cards, form AC.

Expense cards, forms AD and AB.

Duplicate cost-cards, form AE.

Plate-order cards, form AF.

Card-register book, form AG.

Card-transfer book, material, form AH.

Card-transfer book, labor, form AH.

Cost-per-pound book, forms A J and A J J.

Labor-detail book, form AAJ.

Example and description of each of the above forms.

The order record-book, form A, carries a record of all pro-
duction-orders in numerical sequence, with date of entry, num-
ber, and name of customer, memorandum of goods covered by
same, cost of raw material and labor, selling price, and amount of
profit. If the extreme right-hand column is blank, the order has
not been charged. If all other columns are filled the blank right-
hand column calls for immediate investigation. The size of page
is 13 inches wide x 16 inches high.

The production-order for horizontal tubular boilers is a book
6 inches wide x 9 inches high. The first page of the cover is
printed as per form B.

The next page is blank. The normal inclosure of this heavy
manila cover consists of 14 leaves, 28 pages of engineer's paper
quadrille ruled in i -6-inch squares, in blue lines. The first page
is headed "Size and Style." the second "Smoke Box," the third
"Plates"; 2 9-16 inches below the quadrille ruling is broken by a
red liAe, and the caption "Coupons and Test" covers the remain-
der of page 3. Page 4 is headed "Tubes," and 2 9-16 inches below

THE COMPLETE COST-KEEPER.

"it

O V

•c

rt ^n \0

CO 00 00

Tt Tf rf

00 00 00

en CO to

ON 0\
•rt- rf

o a*

00 OD
cn CO

THE COMPLETE COST-KEEPER.

B. B.

Do not fold this.
Order

For

Filled

For

Post Office
Ordered by-
Ship to

Horizontal Tubular Boilers.

190. . . . Entered 190

Patterns ordered. .
Castings ordered.

190,
190.

Forgings ordered.

190.
190.

Charged .
Terras...

190.. Amount, $.

Delivery Credit.

J
K

FORM B.

88 THE COMPLETE COST-KEEPER.

comes the headline "Braces." Page 5 is headed ''Riveting"; 4J
inches below comes "Manholes/' Page 6 is divided equally be-
tween "Handholes" and "Nozzles," and page 7 the same, under
headings "Flanges" and "Tapped Openings." Page 8 is equally
given to "Dome" and "Dry Pipe," and page 9 to "Feed Pipe" and
"Wall Brackets." All of page 10 is headed "Front," and all of
page II is given to "Stack. " Page 12 is headed "Breeching," and
on page 13 "Grate Bars" have 4J inches, "Rear-Grate Bearer" has
I J inches and "Wall Plates" have 1} inches vertical space. Pages
14 and 15 are divided into equal thirds under heads "Rollers,"
"Guys," "Rear-Arch Bars," "Rear-Ash-Door and Frame," "Safety
Valve" and "Steam Gauge." Page 16 has three heads, "Water
Column," "Gauge Cocks,'' and "Water Gauge." Page 17 has four
heads, "Main Stop Valve," "Feed Valve," "Feed Check Valve."
Page 18 has four heads, "Whistle and Pipe," "Buckstays," "Buck-
stay Rods," and "Test." Page 19 has "Insurance," 1} inches ver-
tical space, and "Inspection" covers the rest of the page. Thence
to page 25 the pages are not headed.

Page 25 is printed for cost account as per form C. Page 26
is a continuation of same, as per form D, and page 27 continues
as per form E.

The final two pages of the folio cover of this order form are
blank, because the sub-production-order blanks used in this pro-
duction of the order are to be finally bound against the inside of
this cover with brass fasteners. It will be observed that this pro-
duction-order form covers all the parts which go to make up a
regular horizontal tubular boiler, and also includes ample space for
noting any variations, alterations, or additions .

All production-orders used, except for horizontal tubular
boilers, are printed upon sheets 6 inches wide x 18 inches long,
folded in the middle, making four pages 6 inches wide x 9 inches
high. The first page of all production-orders is printed in copy-
ing ink.

The general order for boiler shop products is shown by forms
F, G, H, and I.

The machine-shop production-order for steam-engines is
shown by forms J, K, L, and M.

The machine-shop production-order for gas-engines is shown
by forms N, O, P, and Q.

THE COMPLETE COST-KEEPER.

Form C.

COST ACCOUNT.

Reference: T— Tracing. I— Information Sheet. P— Pattern. O— Order.

No.

3
3

4
5

7
8

9
10

IX
13
13
14
15

17
18

19
30

31
33

33
24
25
36

Pes.

Item.

cast iron front complete,

Anchors for front,

Set grates inches

long, to make a space of inches wide

Rear grate bar bearer . . . long of . . . x . . iron,

Boiler stand,

Wall plates, x x

Rollers x

Stack X of iron.

Feet of inch galvanized wire rope, . . .

Tee irons for rear arch long

Angle irons for rear arch long

Rear ash door and frame. Opening . . . x . . .

Set Anchors for same

Lever safety valve, with bottom,

inch case steam gauge.

Cast iron water column, with openings into
boiler . . .inch and . . inches center to center.

Glass water gauge, with glass x

.inch gauge cocks,

.inch globe valve

.inch check valve,

.inch gate valve,

.inch whistle,

.feet inch pipe

Buckstays

Backstay rods

Forward . . .

Rer.

Weight

THE COMPLETE COST-KEEPER.

Form D.

References : T— Tracinj?. I— Information Sheet. P— Pattern. O— Order.

No.

28
29
30
31
32

33
34

35
36

37
38
39
40

41
42

43
44
45
46

47
48

49
50
51
52
53
54
55

Pes.

Item.

Ref.

Weight

Amount.

Forward

Boiler steel,

Stack iron,

....

Boiler rivets,

Stack rivets,

feet of Tubes,

Tee iron for braces

Other braces,

All flanges, except dome flange,

Manhole for shell complete,

Manhole plate, yoke and bolt for head, ....

Stiffening ring

Handhole plate and yoke,

Handhole bolt,

Handhole gasket

Manhole gasket,

Dome flange, wrought iron for pipe

Wall brackets,

Pipe for feed pipe

Ells for feed pipe,

Labor on boiler,

Labor on stack, . . . . ,

Forward . .

■■■^

^■"

' J

THE COMPLETE COST-KEEPER,

Form E.

Reference: T— Tracing. I— InfonnaUon Sheet.— P— Pattern. O— Order.

No.

56
57
to
86

Pc«.

Item.

Rel.

Weight.

Amoant.

Forward

Form G.

DETAILS.

Forms R, S, T, and U show the machine-shop general pro-
duction-order. ^

The first page of the folio foundry production-order is shown
by form V. The other three pages are blank.

The first three pages of the smithy production-order are
shown by forms W, X, and Y. The last page is blank.

The use of all the foregoing production-orders is explaine<I
in detail later.

The black cost-cards, which arc sub-production-orders, are
5j inches wide x 8^ inches high, printed as shown by forms AA
front and AB back, and are used to procure material from other
departments than the one in which the prod action -order lies.
Forms AA and AB are from the boiler shop. Similar black cost-
cards are used for the machine shop, bearing the letter M instead

THE COMPLETE COST-KEEPER.

Form F.
B. G.

REC'D IN SHOP,

FILLED

FOR

POST OFFICE...
ORDERED BY...
SHIP TO

ORDER

...190.. SENT TO SHOP,
...190.. ENTERED

190.
190.

BY.

Patterns ordered.
Castings ordered.
Tubes ordered

190. .
190..
190. .

Forgings ordered.
Steel ordered

190.
190
190.

Prints Ready

190..

Nos

CHARGED

TERMS

..190.. AMOUNT, $

DELIVERY

CREDIT

A
B
C

D
F
G
H

J
K
L
M
N
O
P

THE COMPLETE COST-KEEPER.

Form H.

SUMMARY.

O-Onfer.

No.

Pes.

Item.

Ref.

Welcht

AnMNIBt.

....

Labor in shop

Labor in field

5
6

Expenses itemized :

«...

7
g

...,

Patch bolts

Flaosre steel

Shell steel

14
IS

^ank steel heavier than "^-16

Tank steel. No. 0 to i-i6

No 10 sheet

No. 12 sheet

No 14 sheet

....

No. 16 sheet

T«Mk iron . .

QtAoIr rivAta . . •

o*av bolts

feet ot .incntube*

Forward

••••••

...

THE COMPLETE COST-KEEPER.

Form I.

RefercDce : T— Tracing. I— Information Sheet. P— Pattern. O— Order.

No.

Pes.

Item.

Ref.

Weight.

Amount.

25
26

Forward

Form J,
M. E.

Filled

For

Post Office.
Ordered by .
Ship to

DO NOT FOLD THIS SHEET.

Order

190 . . Entered 190 .

By,

Charged .
Terms. . .
Delivery

A
B
C
D

E
F
to
S

190 Amount, $

Credit.

THE COMPLETE COST-KEEPER.

Form K.

SUMMARY.

Reference : T— Traclnjf. I— iDformation Sheet. P— Pattern. O— Order.

No.

Pc«.

I
2

3
4

5
6

7
8

13
14
15
i6
17
i8

19
20

«3
34
25

Item.

Bed, with pillow block cap and gibs.

Top guides

Distance blocks

Crosshead

Piston

Piston rod gland

Valve stem stand

Cylinder with jacket

Cylinder head

Steam chest cover

Valve

Valve stem gland

Valve stem complete,

Crank box

Crosshead box

Connecting rod complete, less boxes.

Crank shaft only

Crank disk only

Crank balances only

Crank wrists, for side cranks only. . .
General work on crank

Pulley .X

Pulley . .

Fly wheel

Gov. pulley for shaf i

Gov. pulley for governor

Ref.

Weight

Amottat,

THE COMPLETE COST-KEEPER.

Form L.

No.

Pes.

Item.

Ref.

Weight.

Amount.

27
28
59
30
31
32
33
34
35
36

37
38

39
40

Studs and nuts for top guides,

Studs and nuts for cylinder head,

Studs and nuts for S. C. cover,

Studs and nuts to hold cylinder to bed,
Eccentric

Eccentric strap,

Assembling eccentric,

Eccentric rod box,

Eccentric rod less box,.

Assembling engine,

Piston gland studs and nuts,

Valve stem gland studs and nuts,

Pillow block studs and nuts,

Bolts to bolt valve stand on,

Pulley and fly wheel keys,

1
42

Exhaust flange for pipe

43
44
45
46

47
48
49
50
51
52
53

Cap screws and nuts for P. B. Cap,.. . .

'tail box comp. with sole plate,

Governor,

Lubricator,

Oil cups,

Oil cups.

Oil cups,

^ Cocks

Cocks,

Forward

""■^

THE COMPLETE COST-KEEPER.

Form M.

Reference : T— Tracing, I— Information Sheet. P— Pattern. O— Order.

No.

Pes.

Item.

Ref.

Weight.

Amount.

54
5S

56
57
58
$0
6o
6i
6s
63
64
6S
66

67
78
79

Forwktd

Cock,

Valve,

Valve.

Valve,

....I

Wrettiih.

Wrench,

Holding down bolts.

. k k . » » » k » > . . k . Holding down bolts,

Washers,

..... .... . . Washers,

. Governor belt , x

. k . . k . Valve stem slide.

"^ 1

of B on the face. These letters B and M show frotn which de|>art^
nient the order issued. No other departments issue these cards.
They are made out either by the head draughtsman or the fore-
man of the dt?partment, as explaineil later, and arc registered oti
the inside of the production-order in the place provided therefor,
and bear the serial order number, and also a specific item number
with reference to this particular production-order only, so that
their position in the list of material can be determined readily with-
out running over the whole list of cards.

THE COMPLETE COST-KEEPER.

POKM N.

M. G. E.

DO NOT FOLD THIS SHEET.

Engine No. . ^ » ^ Order *. '

Filled.. 190.... ; . Entered

For ;......

190,
,190.

Post OflBce.

Ordered by ..., .,...

Ship to By ,

Patterns ordered.
Castings ordered,

190...
190...

Forgings ordered,

190.
190.

Charged.

Terms . . .
Delivery,

A
B
D
£
F
G
H
I

J
K
L
M
N
O
P

190.... Amount, f .
Credit..

.m:

THE COMPLETE COST-KEEPER.

Form O.

SUMMARY.

Reference : T— Tracing. I— Information Sheet P— Pattern. O— Order.

No.

Pc«.

I
2

3
4
5

7
8

13
14
»5

17
i8

'9
ao

31
33
33
24

Item.

Bed with pillow block caps bolted on.

Babbitt liners for pillow blocks

Piston less rings, but with wrist,

Piston rings

Cylinder

Capscrews to bolt cylinder to bed

Cylinder head

Studs with nuts to bolt cylinder head to

cylinder

Mixing chamber complete, less valves

Exhaust valve and stem

Spring for same

Air and gas valve and stem

Spring for same

Side rod for exhaust complete with roller
Side rod for mixing valve complete with

roller and governor wrist

Gas elbow with capscrews

Indicator cock, complete

Complete bracket for side rods,

Connecting rod, complete less boxes. . .

Crank box • • . •

Piston box . • . •
Crank shaft . • • •
Flywheel... ..diameter.
Wheel ke)s.

Ref.

Welfcht

lOO

THE COMPLETE COST-KEEPER.

-I
Form P.

Reference: T— Tracing. I— Information Sheet. P— Pattern. 0— Order.

No.

Pea.

Item.

Kef.

Weight.

--'<

27
28
29

30
31
32

33
34

Exhaust Piping

Air Pipe and Fittings

Gear for Shaft

Gear for Valves

Wrist and Nuts for same

Assembling Engine

Bunsen Burner

Igniting Tube

Chimney

t'ainting

Forward

Form P. — 6 inches wide by 9 inches high.

Form Q.

Reference: T-^1Vacing. I— Infortrtatlon Shfeet. P— Pattern. O^-Order.

No.

Pc«. Item.

Ref.

Weight.

Amount.

52
TO
76

Forward

Form Q.— 6 inches wide by 9 inches high.

THE COMPLETE COST-KEEPER.

lOI

Form R.
M. G.

Rec'd in Shop,

Filled

For

Post Office. . . .
Ordered by. . .
Ship to

Issued by

Approved

Order

IQO . . Sent to shop 190 . .

I vo . . Entered u^ . .

Patterns ordered.
Castings ordered .
Tubes ordered . . . .

,190.
.190.

Porgingfs ordered .

Steel ordered

190.
190.

iro

Prints ready 190 Nos.

Charged.
Terms. . .
Delivery.

190.. Amount, %.
Credit. .

!■

L
M

0
P

..•• .•#•••••

Form R.— 6 incb«s wide by 9 »ncbw high.

THE COMPLETE COiT^KEEPER.

Form S.

DETAILS.

Form S.— 6 inches wide by 9 inches high.

Form T. SUMMARY.

Reference: T— Tracing. I— Information Sheet P^Pattern. O— Order.

No.

Pes.

Item.

Ref.

Weight

Amouot

I
TO
25

Forward

^■^

Form T. — 6 inches wide by 9 inches high.

Form U.

Reference: T— Tracing. I— InformaUon Sheet P— Pattern. O— Ord«r.

No.

Pes.

Item.

Ref.

Weight

Amount.

26
TO

Forward ,

,^ ,.,,, .*..

^^^

■'

Form U.— 6 inches wide by 9 inches high.

THE COMPLETE COST-KEEPER.

»o3

Form V.
F.

Do not fold this sheet

Filled

For

Post Office.
Ordered by ,
Ship to

Order.

190.. Entered,

.190.

By.

Patterns ordered
Castings ordered.

190.
190.

Forgings ordered ,

190.
190.

Charged ,
Terms. . .
Delivery .

190. . Amount, f .
Credit ..

B
C
D
E
F
G
H
I

K
L
M
N
O
P

8ee oeit pift.

104

THE COMPLETE COST-KEEPER.

Po not fold this sheet.

Form W.
S.

Filled

For

Post Office
Ordered by
Ship to. . . .

Order

..190.. Entered

190.

Patterns ordered
Castings ordered

TQO .

190. .

Forgings ordered,

190.
190.

Charged
Terms..
Delivery

190. Amount,

.Credit.

A
B
C
D
E
F
G
H
I

K
L
M
N
0
P

THE COMPLETE COST-KEEPER.

105

Form X. SUMMARY.

Reference: T— Tracing. I —Information Sheet. P— Pattern. O— Order.

No.
A

Pes.

Item.

Ref.

Weight

Amount

■••l

'""

....

...1 .

....!...

■ " ■

..... .... ......... .-•.

....:i.:

•

...J

....

• • •

^immmm

^^vJ

Form X.~6 iocbet by 9 lochM.

io6 THE COMPLETE COST-KEEPER.

For
K

MY.

Form Y. —6 inches by 9 inches.

THE COMPLETE COST-KEEPER.

I07.

Form A

Order N
For....

COST CARD.
Warren, Pa

lOO

0 Item

...Pieces

Description of Job.

(Over.)

Pass to

Pattern Shop.

Foundry.

Smithy.

Machine shop.

Carpenter.

Form A A. — 6 inches wide by 9 inches high.

Green cost-cards are used for the same purpose as the black
cards, but are confined to the boiler-shop department, and are
used for such portions of the boilers or other products as are not
required to be sent into the boiler shop to be attached to the boiler
proper, such as fire fronts, wall plates, grate bars, rear-arch bar*?,
etc. Before these cards, after being filled, go back to the boiler
shop they go to the assistant superintendent, who inspects the
material and stamps the cards "inspected and approved." They
are the same as the black cost-cards in form, but are printed in
green.

Pattern cards, like the black cards, are issued, but only for
new patterns or alterations of old patterns. They are printed on
only one side, as per form AC. They require the approval of tho
assistant superintendent to vitalize them.

I^xpense cards, like the black cards, are issued, but only for
obtaining material or labor that is needed in the specific job in
hand, but would not necessarily be required for a similar job. The
object of this is to record in the summing up of the total cost of
the job that which is probably necessary for a <luplication of the
job. and in a separate place that ex|K'nsc which is attached only to
the specific job. Of course, for the specific job the sum of the two
items, as compared with the selling price, is to be Ukcn into con-

io8

THE COMPLETE COST-KEEPER.

'Form AB.
.' Labok :

Kind.

Name.

Hours.

Rate.

Amount.

Planer

Lathe.

Vise

Shaper, ....

MiU.;

Drill;.

Keyseater,. .

....

Material:

...

Cast Iron pounds

Cast Brass pounds

Forjrinjf

lours
)unds

Wrought Iron pc

Genuine Babbitt pounds

Common Babbitt pounds

Total

■■■^

Form AB. — 6 inches wide by 9 inches high.

THE COMPLETE COST-KEEPER.

109

Form AC.

Wanted by PATTERN CARD.

Department.

Order No Item

For

100. .

. . 1

Pattern Maker :

Please ]

aattern

No for

as per tracing No

When done put No. of pattern on accompanying card and pass all
papers back to Transfer Office. If no alteration or new pattern needed,
state so below, and return to Transfer Office.

Assistant SuperiDten^ent. *
»

Time

•

Material

Total,

"■^^

Form AC— 6 inches wide by 9 inches high.

THE COMPLETE COST-KEEPER.

object of this is to record in the summing up of the total cost of
the job that which is probably necessary for a duplication of the
job, and in a separate place that expense which is attached only to
the specific job. Of course, for the specific job the sum of the two
items, as compared with the selling price, is to be taken into con-
sideration, to determine profits, but for the purpose of estimating
on a similar job the expense items should be scrutinized for the
purpose of ascertaining how much, if any, of same, would prob-
ably appear in the second job.

The cash totals of these cards are carried to the cost columns of
the production-order in red ink and not footed into the total of the
column. These sums are collected separately, and are set near the

total footings in a space stamped "Expense Items $ ," with a

rubber stamp. The front of the card is shown by form AD. The
back is same as form AB.

Form AD.
Dept.

EXPENSE CARD.

190..

...Pieces

Order No

For

Warren, Pa.,..
Item

Description of Job.

(Over.)

Pass to

Pattern Shop.

Foundry.

Smithy.

Carpenter.

Boiler Shop.

Form AD. 6 inches wide by 9 inches high.

Duplicate cost-cards are used by the supply clerk to notify
the storeroom for what order certain material purchased outside
is bought. When these goods are received the clerk in the store-
room fills in the dates of receipt and returns the card to the supplv
clerk.

When plates are received before the shop is ready to com-
mence work upon them they are piled up in the yard in racks, with

THE COMPLETE COST-KEEPER,

III

Form AE.

For Order No

DUPLICATE COST CARD.

Supply Dept. 190. .

Warehouse :

Please receive and store for Dept,

the following goods:

Return this Card to me as soon as goods are received.

Supply Clerk

Goods ready 190. .

Warehouse :

Deliver to

goods when wanted.

Warehouse :

Please deliver at once.

Dept., above

Supply Clerk

Foreman.

Good! delivered 190..

Form AE. 6 inches wide by 9 inches high.

112 THE COMPLETE COST-KEEPER.

Form AR

ORDER FOR PLATES.

inn

Warehouse :

Please deliver to

the following plates nmbered and marked as per margin:

Order.

Number.

Size.

Delivered.

Order rec'd

190..

Filled

190.. Foreman.

Form AF, 6 inches wide by 9 inches high.

the number of each order painted upon each plate. While remain-
ing here they are under the charge of the storeroom keeper, and
when the boiler shop foreman is ready for them he fills in a "re-
quest for delivery" form and sends it to the storeroom. This card
is 6 inches x 9 inches, and is shown by form AE.

Form AF is used by the boiler shop to obtain stock plates
from the storeroom for any specific order. It is to be understood,
of course, that the boiler plates are only constructively in the store-
room ; in point of fact they are stored elsewhere, but until the
plates are ordered into the boiler shop by use of this plate order,
they are in charge of the storekeeper. This form is uniform in
size with the cost-cards.

The card register is a book in which each line is numbered
consecutively and wherein every card of every description is regis-
tered and a chronological history made of its passage through the
shops. This book after the card has been through the shops
and returned to the department in which its production-order lies,
shows as follows:

THE COMPLETE COST-KEEPER.

FoEM AG. Card Registrr.

f '.

. '

«n

>«

- s

• :

■ 1

I I

;

» •

;

I I

•

I •

!
1

!•:::::

: 1

- 1

• s

•

114 THE COMPLETE COST-KEEPER.

First, the individual number of the card in reference to all
other cards, the number of its production-order, date received by
the supply clerk, the respective dates when it went into the depart-
ments through which it had to pass, and when it came out of said
departments, a brief mention of what the material was, and, finally,
tlie date upon which the card was returned to the department from
which it was issued. The pages of this book are i6 inches wide
X 13 inches high, and are shown by form AG. The brief mention
of the material is written in the column of the department issuing
card.

There are two card-transfer books wherein are recorded the
costs appearing on the back of the sub-production orders, for the
purpose of making a financial transfer from one department to an-
other, so as to give the department doing the work or furnishing
the material credit for such labor or material disbursed, and charg-
ing the value to the receiving department.

These two books are exactly the same and have their lines
numbered consecutively, each commencing at the same number.
On one of these the labor entering into the sub-production-order
is entered, and upon the other the material values are recorded.
Two books are used so as to separate labor accounts and material
accounts until the final closing into the respective loss and gain
accounts of the several departments. The pages of these books
are 16 inches wide x 13 inches high. In the headline of one is
printed "Material" and in the headline of the other "Labor." The
general form is AH.

The cost-per-pound record-book has pages 8 inches wide x
133/2 inches high. The left-hand page is shown by form AJ, and
the right-hand page by form AJJ. The two opposite pages make
the complete record. The first column gives the order number, the
next the number of articles, then the size and weight, followed by
the flat cost and shop cost respectively, and under these are the
gross costs and the rate per pound. On the opposite side under
the head of "Remarks," is given a brief description of the particu-
lar article.

This book records the labor-cost of product manufactured in
the boiler shop, and gives the actual cost of the article, and also the
rate per pound, for reference in making quick estimates. Only

THE COMPLETE COST-KEEPER.

lllllilllllllll

Form AH. i6 inchtu wide by 13 inches high.

1 16 . THE COMPLETE COST-KEEPER,

such part of any order is entered in this book as is strictly boiler-
plate work; if an order embraces in addition to the boiler-plate
work, castings or other material not directly attached to the plate
work, that portion of the order is omitted, so that this record fur-
nishes a comparison between the costs of strictly boiler-shop pro-
duct, both total cost and rate per pound. In entering, similar
orders are grouped to facilitate comparison of productk)n costs.
In using these totals for guidance in estimating, full consideration
must be given to all |X)ints of difference between the article to be
produced and those with which it is compared. Individual judg-
ment must be carefully exercised in this connection, as the records
contained in this book cannot serve as an exact guide when the
articles under consideration are dissimilar.

The labor-detail book has pages 13 inches wide x 16 inches
high, and is shown by form AAJ.

This book is used for making a continuous record of all opera-
tions on each of the ultimate elements of all the parts of each kind
of production. This book also records such isolated items of labor
costs as may be considered of value for future reference, as obtain-
ed fcom day to day by the cost-clerk in his investigations of the
various labor records that pass through his hands. At the head of
the page is recorded the elemental name of the article, and imme-
diately below it the weight and kind of material entering into it is
inserted. Below, the page is divided into two parts vertically for
the purpose of giving ample room for recording various processes.
The page is arranged for separate-item records of operations per-
formed upon the one piece, and the name of each operation is writ-
ten in bold letters at such place upon the page as is determined,
starting close to the left hand of each half- page. Below this is
recorded the date of the operation, the workman's name, the labor
time, rate per hour, amount of money paid, the number of pieces
produced, and the rate per piece. A reference to the rate-per-piece
column will show at a glance the fluctuations from day to day, thus
giving to the superintendent and foreman knowledge of such ope-
rations as need looking into and improving in method. Where
the work is done by the piece the entry is made in red ink.

The above-described forms are used principally if not exclu-
sively for the record of what may be called "intermittent" produc-
tion-orders, as distinguished from "standing" or "continuous"

THE COMPLETE COST-KEEPER.

117

Form A J. ( Left-hand page.)

COST PER POUND.

Order
Number.

No.

Siie.

Weight

Field Cost

ShlpCo«L

Amount.

Rate.

Amount.

Rate.

1
1

. . .

Form AJ. Left-hand page. 8 inches wide by 13)^ inches high. The left-
hand page and right-hand page together make the complete form.

Form AJJ. (Right-hand page.)

Remarks.

Form AJJ. Right-hand page. S ioche* wide by 13H inch«» high. The
left-hand page and right-hand page together make up the compUto form.

ii8

THE COMPLETE COST-KEEPER.

O »-

1
<

—

d
o

•a

orders. For the standing-
order records the f«.)llow:ngf
forms are used :

Transfer card, form AK.

Stock-work card, form AL.

Piece-work card, form AM.

Foundry report-card, form^
AN and AO.

The transfer card is of stan •
dard size, but is printed in red
ink. The face of the card is
as shown by form AK. The
back is the same as form AB.

The transfer card is used
for procuring material from a
department other than the one
issuing the card. It is used
for obtaining all kinds of ma-
terial except such as enters
into the production -orders,
which is procured upon the
various kinds of cost or sub-
production - cards elsewhere
described. This card is used
also for procuring material
from the smith shop for both
the machine shop and boiler
shop for standing orders, in
the same manner that the
stock work-card is used for
obtaining labor in the ma-
chine shop. This card is also
used between departments or
in the same department for
transferring production mater-
ial and labor to unproductive
uses. This card passes through
the transfer office the same as
any sub-production-card.

THE COMPLETE COST-KEEPER.

119

Form AK.

Filed

Charge. . .
Credit. . . .

Do not fold this sheet.
TRANSFER CARD.

190. . Dated 190

Entered 190.

Please furnish for Shop

Pass to
Pattern Shop.
Foundry.
Smithy.
Machine Shop.
Carpenter.

Foreman.

Form AK.

Transfer Card. 6 inches wide by 9 inches high,
in red ink.

Printed

The stock-work card is of standard size, and is printed upon
yellow paper as per form AL. This card is used to order the
machine shop workmen to perform the various operations upon
those products which are being continuously pro<luced on standing
orders. In continuously manufacturing a protluct it is not prac-
ticable to issue production-orders for a certain sjxjcific number of
completed machines, and carry those orders arbitrarily through
the shop, making only the number of parts called for, as may be
done with intermittent orders for sixrcial material, because it is
often desirable to make a larger number of certain parts than
might at first be sjiccified on such order. This by reason of the
size or character of the parts, or. in some instances, to keep other-

120 THE COMPLETE COST-KEEPER.

wise idle tools in work, and the foreman of the machine shop is
authorized to issue this stock-work card to keep tools busy, he
being expected, however, to avoid an over-stock of any parts.
This stock-work card furnishes the cost-clerk with a knowledge of
the cost, collective and separate, of all the operations performed
on any parts entering into the continuous product. To this end,
the foreman makes one card for each specific operation on one
size piece only. The number of pieces is not material so long as
they are identical and the operation is the same, except that, bar
accident, the machine tool and attendant should have clear time in
prospect for the completion of the order, before man and machine
are set to other work. To bring this about each machine, as say,
an engine of a certain size, is analyzed. It is sub-divided into all
of its component production elements which are reduced to their
lowest terms. Then a schedule is made of the separate operations
upon each of those ultimate elements. The foreman is furnished
with an indexed book of convenient size in which all these opera-
tions are recorded, and he makes out his stock-work card in ac-
cordance with this book list. When the work upon any stock-
work card is completed and certified by the workman, it is turned
back to the foreman of the machine shop, w^ho approves it, and the
money computations are made by the clerk of the machine shop.
It is then passed to the cost-clerk and is entered upon the labor-
detail book, form AAJ, under the particular operation for the par-
ticular piece. The cost of each piece, thus determined, is extended
into one column day after day, and a comparison can be made by
inspection of that column of successive costs of that specific opera-
tion. If there are variations, it can be ascertained which work-
man produces the work most cheaply, and such action can be taken
in the management of the machine shop as is deemed proper to
bring these daily costs of the operation down to the lowest possible
point, for it is in these ultimate-detail costs that the total-cost
reductions must be made. Inasmuch as the labor employed upon
this card belongs to the machine shop, to which the product also
belongs, this card does not go to the transfer office, and is not
transferred.

The piece-work card is of standard size, printed upon blue
paper, and as shown by form AM, it is identical in its functions
-,vith the stock-w^ork card, and is used for the manufacture of tlie

THE COMPLETE COST-KEEPER.

121

Form AL.

STOCK WORK CARD.

Issued 190.

To.

Perform the following operation :-

On.

Keep your time on this work and report same below.

I certify that I have properly completed above operation, and that
the time consumed was

Workman.

Workmen are not to fill in below.

Number of pieces.
Rate

Amount

Hours, .
Rate, . . .

Amount

Approved ;

Foreman.

Entered :

Cost Clerk.

Form AL. Stock Work Card. 6 inches wide t^ 9 inches high.

122

THE COMPLETE COST-KEEPER.

Form AM.

PIECE WORK CARD.

Issued 190 .

To.

Perform following operation

On.

Keep your time on this work and report same below.

I certify that I have properly completed above operation, and that
the time consumed was

Workman.

Workmen are not to fill in below.

Number of pieces,
Rate,

Amount,

Hours,

Rate,

Amount,

Approved :

Foreman.

Entered

Time Clerk.

Noted, Cost Clerk.

Form AM. 6 inches wide by 9 inches high. Blue paper. This form goes
to both time clerk and cost clerk. Form AL goes to cost clerk only.

THE COMPLETE COST-KEEPER, 123

same material, differing only in the labor performance, being at
piece rates. The workman records the number of hours consumed
in the performance of the operation upoti the quantity of material
covered by the card. It is possible, owing to the fonn useil, to
make a comparison upon this card of the difference between the
workman's time-earnings at day-rates and piece-rates, and t«)
readily not time-gains and wage-gains due to piece-rates. When
the order is completed the piece-work card goes to the time-clerk,
and is entered upon the piece-work rei>ort, as will be describe!
under the head of time-keeping. It then passes to the cost-clerk,
who enters it in the labor-detail book, giving actual cost at piecc-
rates, and the probable cost at day-rates.

In shops where any pretense of system is observed, some sort
of a ready-reference list of "orders in progress'* is kept. Such a
list should be as compact as possible, and it is very important that
some method should be adopted by which the orders on this ready-
reference list can be maintained readily in numerical sequence.
There were first used flat boards arranged with dovetailed bat-
tens so that the order-reference slips could be shipped readily in
and out of place. This was usable, but was not so convenient as
was desirable, as the removal of a finished-order card and the in-
sertion of a new order card often forced the handling of a con-
siderable number of other cards to obtain the arrangement of all
the cards in numerical sequence of order numl)ers again. Besides
this, if these order reference-slips were made in characters large
enough to be readily noted in a general view, which is an essential
requirement, the flat lK)ards extended over so much space as to be
inconvenient. .As an improvement a 4-sided revolving older refer-
ence-slip cabinet was devised, as shown in the engraving, which
holds 38 order reference-slips on a side, or 152 referc!\ce~slips in
all, each having ample rcwm for large figures, and also oajKible of
readily receiving and .securely retaining .small targets of differ-
ently-colored canlljoard, indicating stages of progress by their
colors, .so that the order iuunlK»r can be rca<l at a glance and the
colored target slip gives instant information as to state of progress.
The whole height of the revolving |Kirt of this cabinet is only
about 30 inches, so that every |)art is readily readable as it stands
on the desk, and as it revolves freely and remain- standing at any
point the four |)anels are ec|ually acccnsilile.

124

THE COMPLETE COST-KEEPER.

Revolving Cabinet for Reference Slips.

The reference-slips used are of cardboard, 12 inches long x
16 inches high, inscribed as shown, "Jan. 10, 1898, 33319 B. Par-
shall & Sill, 2-25 H. P. Boilers," in a single line. This inscription
gives first the month, day, and year of the order date, next the
order number and initial of department, then the customer's name,
and finally the work ordered, in this case two 25-h. p. boilers. This
long narrow slip slides into a tin holder of this section, which is
3-4 inches high, 3-16 thick, 12 inches long, and leaves an open space
at a, 7-16 wide, fully exposing the legend on the reference-slip.
The right-hand side of each panel of the cabinet is made open for

THE COMPLETE COST-KEEPER, 125

the whole height up and down occupied by the tin trough-like
reference-slip holders, the front vertical wooden retaining-strip
being fastened to the cabinet body at the top and bottom extremi-
ties only. The tin slip-holders rest on each other, and the refer-
ence-slip can be slipped out to the right without disturbing any-
thing else, or any tin holder may be removed bodily, carrying its
slip with it, without disturbing any other holder except to allow
those above to drop down and close up the space thus made vacant.
The resulting vacancy at the top of each panel is filled by tins
brought over from the bottom of the next succeeding panel, thus
retaining numerical sequence. This makes it very easy to examine
the list of orders in work, of which as many as 152 may be exhibit-
ed at once in this small revolving cabinet, and to remove any one
when completed. The colored cardboard targets are instantly in-
serted, removed or exchanged, and the whole device is very con-
venient and satisfactory, and inexpensive. The cabinet was made
in the pattern shop, of cherry, and the tin holders were made by a
common tinsmith, being merely troughs of tin plate with the sides
hooked over to produce the form known to machine-tool makers
as a "female square dovetail." At the left of this cabinet in the
engraving there is shown part of a flat form of board to receive
these same tin slip-holders. It is much higher than the revolving
cabinet, and has only a very limited capacity, and is less conve-
nient to use. The revolving cabinet seems to fill the conditions
of the ready-reference order-slip of work in progress very simply,
and very completely.

When work is completed, ready for inspection, the foreman
of the construction department notifies the assistant superinten-
dent, using form BH. The assistant superintendent makes the in-
spection, and notifies the foreman in whose department the work
rests of a favorable result by use of form BHIL The foreman
then sees that the order is made ready for shipment, and notifies
the assistant superintendent, using form BHHH, at the same time
notifying the shipping department. These forms ensure prompt
inspection and shipment through fixing on the individual in fault
the responsibility for any delay which may occur.

Form BQ, is a standard Ixiiler-packing list, ami is printed in
duplicate with a line of |K*rf<)rations Ix^twecn the two forms. lk)th
forms are filled, one going to the consignee, and one to the a.w5-
tant superintendent

126 THE COMPLETE COST-KEEPER.

Form BH.

READY FOR INSPECTION.
Asst. Superintendent :

F^ollowing material on Order No is now

complete and ready for inspection :

Foreman.

FoKAi BHH.

INSPECTED AND APPROVED.
Foreman :

F'oUowing material on Order No

is inspected and approved :

Asst. Superintendent.

FcRM BHHH.

READY FOR SHIPMENT.
(This must be made at same time as shipping memo.)

190. .

Asct. Superintendent :

Order No is now ready for shipment.

Am now notifying Shipping Dep't.

Foreman.

Forms BH, BHH, BHHH. Size, 5^ inches wide by 2% inches wide.

THE COMPLETE COST-KEEPER. 127

Form BR. Cost of boiler-shop labor. This form 4s used for
recording estimate detail and actual detail boiler-construction
costs. The actual-costs column is made from detail labor-time
figures supplied by the foreman of the boiler shop.

Form AX. Tank builder's weekly report. Field work.

A large item of the boiler-shop labor consists of "field" or out-
side work in tank and i>enstock building. Both weekly and dailv
detailed-labor rejxjrt forms are shown. The weekly report has a
docket form printed on the back, in the upper right-hand corner,
which is reproduced on the face to save room.

Form AXX. Front and back, show two sides of the daily
report form complete.

Form AI, "Consignment Inquiry" is used between the works
and branch departments in other localities, as is indicated by its
text. Size 5 3-8 inches wide x 8 1-2 inches high. This form is
returned from the branch house, with bad order memorandum, if
any, on the back, signed by the branch department foreman.

SYNOPSIS.

LIST OF FORMS COMPLETE.

Production-Order Record- Book.
Production for Horizontal Tubular Boilers.
Boiler-Cost Account.

Boiler-Cost Account.
Boiler-Cost Account.
Boiler-Shop General Production-Order.
Boiler-Shop Details.
Boiler-Shop Summary.
Boiler-Shop Summary, continuc<l.
Boiler-Shop Steam- Engine Production-Order.
Steam- Engine Summary.
Steam- Engine Summary, continued.
Steam-Enginc Summary, continued.
Gas-Enginc Production-Order.
Summary.

Summary, continued.
Summary Miscellaneous.
Machinc-Shop General PrcKluction-Ordcr.

Form A.

•«

• •

128

THE COMPLETE COST-KEEPER.

Form BR.

COST OF BOILER SHOP LABOR

On Order No .of^.

for

Finished 190. . Fill out all Details.

Operation.

Eatimate.

Cost.

Laying out Sheets

Flanging Heads by Machine

Flanging Sheets by Machine

Flanging' Heads by Hand

Flanging, ' Sheets by Hand .-

Punching Sheets on Gang

Punching .Sheets on Tables etc

Rolling .Sheets

Planing .Sheets

Bevelling . Sheets

Fitting up . . Sheets

Rivets Dia. by Hand

.... Rivets Dia. by Machine

Rivets Dia. by Machine.

.... Rivets Dia. by Machine

Calking Feet by Hand

Calking Feet by Machine

Testing

Unloading Plates

Painting

Total

REMARKS.

Form BR. Size s}4 i°s. wide X 8^ ins. high.

THE COMPLETE COST-KEEPER 129

" S. Details.

" T. Summary.

" U. Summary, continued.

" V. Foundry Production-Order.

" W. Smithy Production-Order.

" X. Summary.

" Y. Summary, continued.

" AA. Black Cost-Cards.

" AB. Green Cost-Cards.

" AC. Pattern Cards.

" AD. Expense Cards.

" AE. Duplicate Cost-Cards.

" AF. Plate-Order Card.-

" AG. Card-Register Book.

" AH. Card-Transfer Book.

" A I. Department Inquiry.

" AJ. Cost-per-pound Book. L. H. Page.

" AJJ. Cost-per-pound Book. R. IL Page.

" AAJ. Labor-Detail Book.

" AK. Transfer Card.

" AL. Stock-work Card.

" AM. Piece-Work Card.

" AN. Foundry Report-Card. Front.

" AO. Foundry Report- Ik)ok, Back.

** AP. Workman's Gate-Record.

" AQ. Time Sheet.

" AR. Qaim for Over and Half-Time.

" AS. Piece-Work.

" .\AS. Over-time and Half-time.

" AT. Pay-Roll Book.

" AU. Cut-page Ledger.

" AAU. Bills-Payable Record-Page in Ledger.

" AV. Cash Book.

•* AW. Vouchers.

" AAW. \'ouchcr Book. L. H. Page.

" AAX. Voucher \VxM. R. H. Page.

•• AY. Bills-Receivable Book. L. H. l^ige.

" AZ. Bills-Receivable Book. R. H. Pige.

" BA. Distribution of Sales. L. H. ftige.

I30

THE COMPLETE COST-KEEPER.

Form AI.

BRANCH DEPARTMENT INQUIRV.

W. H.No

Stores Room

To Dep't.

Have you received following goods in good order :

190.

'""

••

Sh
Aj

•on
lip
5 . .

1 .
pec

i..

[90

• •

...

Car No Initials

Warehouse Clerk.
Above goods received in good order, except as noted on back.

Foreman.

Branch Department Inquiry. Form AI. 5%" ins. wide by S}^ ins. high.

THE COMPLETE COST-KEEPER, 131

" BB. Distribution of Sales. R. H. Page.

** BC. Freight Distribution-Book. L. H. Page.

*' BD. Freight Distribution-Book. R. H. Page.

** BE. Purchase Distribution-Book. L. H. Page.

" BF. Purchase Distribution-Book. R. H. Page.

** BG. Incoming Invoices.

*' BH.

" BI.

" BJ. Sundry Commission-Sales.

** BK. Settlement. Commissions.

" BL. Commission-Sales Statement.

'* BM. Commission Statement.

" BN. Record of Machinery Consigned.

" BO. Notice to Order Department.

" BP. Suspense Ledger.

" BQ. Packing List.

" BR. Cost of Boiler-Shop Ubor.
The foundry report-card is printed on cardboard of standard
card-index size, 3 inches x 5 inches, and is filed in a card-index
cabinet. The card is shown by forms AN and AO. This card is
turned in from the foundry each morning for the preceding day'.^
heat. The cards are numbered consecutively for the purpose of
showing that cards are omitted only upon the days when no work
is performed. What is designated upon the face of the card as
"foundry stock'* is such material as the foundry properly may sell ;
that is, rough castings such as standard grate-bars, or similar
goods that are sold without any finishing. •* M. S. stock" refers to
rough castings which are made on standing orders for the stand-
ing-order production of the machine shop. "B. S. stock" stands
for the same class of material with reference to the boiler shop.
The amounts of castings made under both of these headings arc
transferred daily in the transfer office upon the transfer book the
same as though this report were made on any of the other kinds
of cards used for the purpose of transferring material ; also the
total amount of brass castings reported for the day is immediately
transferred to the machine shop. The material under the head of
"orders," consists of all castings made on product ion -orders or
sub-product ion-orders. The "W. H." numl>er upon the face of the
card indicates the number of the line in the transfer book upon

132

THE COMPLETE COST-KEEPER.

Form AN.

Foundry Report No. 1447. For i

90..

FOUNDRY STOCK : All material not mentioned below,
made up for stock

M. S. STOCK • Oil engine castings, Horizontal engines
up to and including ii)/2Xi2 safety valve castings. .

B. S. STOCK : Oil well hand hole yokes and plates, oil
well grate bars, oil well safety valve balls

ORDERS : All castings made on cards or orders

Brass Total good iron castings '

Light up (Bad Castings.) METERS AT 7 A

. M.

Blast on ( ) i 6

First iron 2 7

Dropped 3 8

Gauge ^^ 4

• 9

.10

....

Face of Foundry Report Card. Form AN. Standard card index size, 5 inches wide by

3 inches hijrh. Printed on face as shown.

Form AO.

Charge. Coke.

Shot

Sprues.! Refuse.

Heavy
Scrap.

LiRht
Scrap.

- 1
C

Bed.. .

2nd

■ ■ 1 ■ ■

3rd.

__..-.

4th . . .

5th

6th

7th

Total

ted Ire

)n to Fue

Weighed

Lback.

0 '

Good Castings.

Loss

c 1

Backof Foundry Report Card. Form AO. Standard card in dex size.

THE COMPLETE COST-KEEPER. 133

which the card is entered. The record at the left of the face side
of the card gives the log of the melt ; that is, time of cupola light-
ing and so on. The record at the right under the head of "Me-
ters," is the reading of the gas meters which measure the fuel
supply for the steam boiler running into the foundry, as natural
gas is used for fuel. In the center is placed the number of pounds
of ba(f castings in the melt. On the reverse side will be found the
various charges and the quantity of material used in each charge,
together with the total. The letters **A, B, C" in the three columns
at the right-hand side are for the various grades of pig iron used,
and opposite the corresponding reference letters below are written
the names of the several brands used. The other information em-
braced upon this side of the card is the quantity of iron melted,
the quantity that is weighed back, that is, that was not converted
into castings, the total amount of good castings, and the loss of the
heat ; also the ratio of iron to fuel.

Labor-Record and Pay- Roll.

Brass checks, each stamped with a workman's number, arc
used to obtain the workman's gate-record. There is a numbered
rack or check-board in the gatekeeper's office in which these checks
are stuck each under its own number. This check-board differs
from the usual construction in being arranged with inclined hori-
zontal strips, making long narrow shelves sloping downward, with
a semi-circular cut made in the back of the board at the inner and
lower edge of the shelf, so that the check can be very quickly slip-
ped into its place, under its number in the brass facing strips which
form the front edge of the shelves; the slanting shelf and the cut
in the rack-back ser\'e, together, to hold the check securely in posi-
tion, and at the same time permit the check to be handled much
more rapidly than is possible where the checks are hung on hooks,
in the usual manner. The check-board is hinged to the right-hand
side of the check-window casing, and is fitted with a hook at the
bottom, by means of which the check-board can be fastened, back
out of the way. against the wall, or may be held at right angles
to the wall, as is most convenient when filling the rack from the
check-box. The constniction of this check-board can be under-
stood from this description and the engraving given herewith.

134 THE COMPLETE COST-KEEPER.

Check Board. Window, and i^>ox.

THE COMPLETE COST-KEEPER. 135

As the workman enters the gate his brass check is taken from
the rack and handed to him. This he retains while in the works.
Upon leaving the works he deposits his check at the window as he
passes out, on a broad window-sill inside of which a box is hung,
as shown in the engraving. Each workman as he passes out lays
his check upon the window-sill and the gatekeeper sweeps it into
the box.

This can be done very rapidly so that there is no delay in let-
ting the workmen out. During the forenoon the gatekeeper ex-
amines his rack and checks the workmen in from the check-board,
on form AP for the machine shop, and on similar forms for the
other departments. These forms are 81 inches x 13^ inches, and
ruled as shown. This is easily done, as the board was full of
checks before the men commenced to come in the morning, and
the vacancies upon the board during the forenoon show precisely
what men have taken their checks and passed in. If a man is late,
instead of a check mark being put opposite his name the actual
time of his arrival is inserted in red ink, so that it will be con-
spicuous. After checking off the arrival of the men, the board is
filled with a set of duplicate checks ready for the afternoon admit-
tance. The checks that are turned in as the men leave the works
are kept in the box and during the afternoon they are entered in
the first "out" column, completing the time record for the first half
of the day. The same process is followed for the afternoon. If
a man reaches the works prior to the commencing hour, no record
is made as to the exact time that he comes, as that is entirely
immaterial so long as he is in the works by the proper time. It is
only the late comers whose exact time is noted. If a man does
not come in at all an "X" is put opposite his number. If a man
is late one, two, or three minutes he is not docked for it, but it *s
recorded in an alphabetical book, under his name, and this book is
examined periodically by the superintendent. If a man is found
to be habitually late, such steps are taken as will induce prompt-
ness.

These forms after being filled out by the gatekeeper are sent
to the respective foremen and are checked with the tally of the
department time taken in their departments. Inasmuch as in the
machine shop the time kept by the workmen is turned in only once
a week, the time is entered upon the time book from these sheets,

136

THE COMPLETE COST-KEEPER.

and is checked up by the time claimed on form AQ, at the end
of the week. If any discrepancy exists the time-clerk is expected
to investigate and reconcile the records.

A time book, bi-monthly, is kept in each department, of ordin-
ary stock ruling, which is turned over to the book-keeper each two
weeks in order to make up the pay-roll. In the machine shop each
man is provided with sheets, bound in book form, and perforated
at the left-hand side, upon which he keeps his time in detail for

Form AP.

WORKMAN'S GATE RECORD.

Warren, Pa

, 100. .

To the Foreman of Machine Shop :

The following is a memorandum of time recorded for your men
this day. Your attention is called to shortages that you may compare
with your time record.

No.

In.

Out

In.

Out

No.

In.

Out

In.

Out

No.

In.

Out

In.

Out

lOI

134

135

t68

169
to

202

Form AP, Workman's Gate Record. 8)^ inches wide by 133^ inches
high. Similar forms for all departments, headed for foreman of each.

one week. This sheet, form AQ, is 7| inches wide x 8 inches high,
and printed upon yellow manila paper.

At the end of each week this form is passed to the department
time-clerk and is checked up with the time-book, as stated above.
All the workmen's time, during the regular hours of employment,
whether on piece-work or not, is recorded upon this sheet, and paid
for. Over-time andhalf-time are added later, and the amount of
time on piece-work is determined by form AM, and treated as
described below. This form AQ is used only in the machine shop.
In the other departments the time is kept by the foreman or the
time-clerk.

THE COMPLETE COST-KEEPER.

137

Form AQ.

TIME SHEET, for week ending igo..

Rate Name, No

Order.

Work.

Hours. Rale. Amount.

Total for w©ek, - • • .

I 1

Form AQ. n% inches wide by 8 inches high, on yellow manila paper.

138 THE COMPLETE COST-KEEPER.

Form AR is 8J inches wide x 3J inches high, and is printed
upon pink paper. Each workman who has made over-time or half-
time turns in one of these **AR'' cards every day.

Form AS is a form of same size as AQ, and is bound in
books the same way, but it is printed upon blue paper, and is kept
by the department timekeeper. This card is made for two weeks
with one line for each working day. Under the head of "piece-
work" the workman is credited with all his piece-work as entered
on form AL. In the **less time-consumed" column the time re-

FoRM AR.

CLAIM FOR OVER AND HALF TIME.

Warren, Pa 190.

S. W. & Co.:—

I claim OVERTIME for this day as follows:
On Time

I claim HALF TIME for this day as follows :

On Time

O. K Foreman. ,

Workman.

Entered Time Clerk.

Form AR. 83^ inches wide by 2% inches high. Pink paper.

corded on form AI as being consumed in the operations involved^
is deducted, for the reason that upon form AQ and AR are entered
all the time that the man has worked, no matter upon what work ;
either piece-work or not. The object of this procedure is to pro-
duce such records in the column headed ''net," that the superin-
tendent can see at a glance precisely what amount the workman
has made over and above his regular time rate, as stated in the
description of the stock-work card. This card is entered under
the heading of "piece-work and over-time" on the pay roll, form
AT.

Form AAS is same size as form AQ, and bound in books the
same way, but is printed on pink paper. This is also made for

THE COMPLETE COST-KEEPER.

139

Form .

No. . . .
Report
Fortw

PIECE WORK.

•

of Piece Work of

0 weeks ending 190. .

Day.

Piece Work. |

Less Time Consumed.

Net.

Description. |Rate

Amount 1

Houra.

Rate

Amount j

[

....

•

. . .i

Total

The above is in addition to regular

time already credited.

Foreman.

Form AS. 7)^ inches wide by 8>^ inches high. Printed on bine paper.

I40

THE COMPLETE COST-KEEPER.

Form AAS. OVER-TIME AND HALF-TIME.

No $.

Report of Over-Time and Half -Time of

For two weeks ending

190..

Day.

Work Done.

Ovei-Time.

HaU-Time. j

Total.

Hours.

Ra..

Amount

Hours
Work.

Ra(«

Amouut

;

•

i !

1" '

r ■

Total

The above is in addition to regular ti

me already credited.

Foreman.

Form AAS. yj^ inches wide by 8>^ inches high. Printed on pink paper.

THE COyfPLETE COST-KEEPER,

141

two weeks, and receives the
records of over-time and half-
time as claimed on form AR.
and at the end of two weeks
is entered in the proper col-
umn of the pay-roll, form AT.

The pay-roll book has
pages 13 inches wide x 16
inches high, and is ruled as
shown by form AT.

The pay-roll is made out
by the general book-keeper
upon the form as shown. The
credit to each man is shown
on the left-hand side, and the
debit on the right-hand side
of the same page. The first
column gives the pay num-
ber, which is the number of
the check drawn upon the
bank in payment of the man's
wages. Next follows his
name and his shop number.
Then comes his regular time,
that is, if he is a day man it
will be the total hours-work
for the two weeks period
from 7.00 A. M. until 6.00
p. M.

Then follows half-time
and over- time, form AAS.
The next column is for piece-
work made. The half-time
is one-half time on a second
tool ; the over-time is for any
time in excess of regular time;
the piece-work is the net
amount earned for number of

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142 THE COMPLETE COST-KEEPER.

pieces made at the established rate, less a deduction for the amount
of time consumed at the man's regular day rate, for which he has
been paid under head of regular time. If his piece-work should
amount to less than the time consumed at his regular work, a de-
duction is made of a corresponding amount on the right-hand side
of the page under the heading of ''deductions." The half-time is
for one-half the time occupied in running a second tool. The
column of "total credit" means the gross amount of pay coming to
the individual. Occasionally, money is paid to employees between
pay-days, or goods may be furnished to them. In these cases a de-
duction is made under the head of ''deductions," and the net
amount carried into the column headed ''paid on pay-day." This
is the amount of the pay-roll check issued under date of the last
day of the pay period, and numbered with the corresponding
number on the opposite end of the line. A separate account called
the "pay-roll account" is kept at one of the local banks, and an
amount equal to the total amount of the pay-roll checks is deposit-
ed to the credit of the pay-roll account and charged to that account
on the ledger each pay-day. The individual checks are credited
to that account upon pay-day and charged to "labor-paid" account,
as described under "exposition of accounting system." The gross
deductions are also charged to the "labor-paid" account and cre-
dited to the proper accounts. Thus, the two charges to "labor-
paid" account equal the amount in the "total-credit column." The
amount in the "total-credit column" is credited to "labor-payable"
account, as elsewhere described and charged to sundry accounts,
as per list under head of "distribution of pay-roll" in exposition
of accounting system.

It will be observed that none of the time and pay-roll items
•depend upon entries made by a single person ; in all cases at least
two original records are made, which are checked against each
other and made to agree. This double record calls for added form
room, but makes errors unlikely.

Operation of Cost System.

The production-order is filled out from contracts or custom-
ers' orders by the assistant superintendent, who has charge of the
details of all orders from the time they are received until they
are shipped. The contracts or customers' orders are first ap-

THE COMPLETE COST-KEEPER. 143

proved by the superintendent ; the orders are then turned over to
the manager of the sales department for his information, and by
him passed on to the assistant superintendent, who makes all pro-
duction-orders. After the production-order is entered, its first
page is copied in a press-copying book for permanent record, and
then, together with all the data and information connected with
the same in the form of correspondence, contract, etc., is sent to
the head draughtsman, who carefully examines the specifications
and makes such necessary drawings as will be required to give
proper interpretation to the specifications. When the drawings ar«i
finished the head draughtsman stamps upon the face of the pro-
duction-order "drawings ready,'' and it is then turned back to the
assistant superintendent. Prior, however, to the return to the
assistant superintendent the cost-cards, or sub-production-orders
are made out by the head draughtsman and are recorded by the
supply clerk in the card register, as hereafter noted. If suitable
rough stores are not on hand in the storeroom, the production-
order is held by the assistant superintendent until the material,
such as steel plate, etc., which is purchased outside, arrives. It is
then passed to the foreman of the department who is to manufac-
ture the goods, and he proceeds to construct the work. In the case
of a small order requiring no drawings, the assistant superinten-
dent sends the order direct to the foreman of the department which
is to fill it. and in that case the foreman or his clerk makes out the
cost-cards.

After the cards are issued, either by the head draughtsman
or by the department foreman, as the case may be, they are imme-
diately sent to the supply clerk, who vitalizes them by recording
them in the card register and placing upon each its specific serial
number. He then sends the card to the first department having
material to furnish or work to perforpi on it and enters in his
register the date when the card was sent 10 that department. As,
for instance, should a card come from the boiler shop for a water-
column requiring a casting, and machine-shop work on that cast-
ing, the card would go first to the foundry. The date of sending
to the foundry would be entered in the proper column. After
casting the water-column the foundrvman would note on the back
of the card the number of pounds of casting, and return the card
to the supply clerk. Then the card would be again entered upon

144 THE COMPLETE COST-KEEPER.

the register as received back from the foundry on such and such a
date, and then would be charged to the machine shop on the same
date and sent into that department for the machine work. As soon
as the machine work as finished the card would be returned to the
supply clerk, who would note in the proper column the date upon
which it came back from the machine shop, and would also enter
in the column headed "returned" the date on which he returned
the same to the department issuing it. Before doing this he would
stamp upon the card "material ready" and affix the date of return.
The card then would go to the foreman of the boiler shop whence
it issued, and remain there until he was ready for the material.
The water-column itself would go to the store room and lie there
until sent for, by the boiler-shop foreman in this case. When
ready to use the material the foreman stamps upon the card ''please
furnish at once," and sends it to the storeroom. If the material is
of such a size that the man who carries the card can carry it back
he brings the material and card with him. If not, the storeroom
gang deliver the material by the established delivery methods,
usually by the locomotive yard-crane, and the card is returned to
the foreman at the same time.

The passage of these cards from one department to another
is effected by means of a messenger service, in which the office
boy makes the rounds of the entire works six times a day, trans-
ferring all papers that are for interchange from and to "post-
office" boxes placed at each foreman's desk, so that no card is
likely to lie waiting for delivery longer than one and one-half
hours at any point. A hurry-up matter is sent by special messen-
ger, but ordinarily the regular trips suffice.

Before sending the card back to the department issuing it,
the supply clerk computes the money value of the labor and mate-
rial represented by the card, extends same in the proper column on
the card itself, and makes the financial transfer in the transfer
books as outlined above.

All these cards, as fast as filled, together with the production-
order, lie in the department filling the production-order until the
order is filled and ready to ship. When the order is completed all
the cards are placed on the inside of the production-order and sent
back to the supply clerk. The supply clerk takes the order and
enters in the proper column on the inside of the production-order

THE COMPLETE COST-KEEPER. 145

itself, and opposite to each item that was registered when the car. I
was issued, the money value of same, taken from the card itself.
These he foots up, thus obtaining the total flat cost of the job as
soon as the job is completed.

The value of this system depends in a large measure upon the
judicious issuing of the cards. The theory upon which the me-
thods here shown are founded, is that the articles represented by
a production-order are to be sub-divided and analyzed to their
lowest terms and then the lowest term is represented by a card.
For instance, in building an engine there would be one card for
each of the component parts ; one for the fly wheel, one for the
pulley, one for the crank shaft, one for the bed complete, one for
the cylinder, one for the cylinder head, one for the valve, one for
the steam-chest cover, etc. If building six engines on the same
order, one card would represent six of each of the pieces above,
the division being made upon the kind of piece and not the numbtr
of that kind, as all pieces of that one kind would be made upon
one card. This gives advantages in two ways: First, it enables
the card to follow the pieces that it represents clear through the
shops, going to every workman who notes labor on these pieces ;
second, it gives the cost in detail, so that when a similar job comes
up, an estimate of cost may be made, even though there is some
variation in minor detail, by means of appropriate deductions and
additions, which will be very much closer than mere guesswork.

After a production-order has had its total cost determined, it
passes to the cost-clerk, who records it upon the cost-per-pound
book, form AJ, and also goes through the details of the sub-pro-
duction-orders filed inside the folio and takes oflF all information
of probable future use. and enters such items in the labor-detail
book, form AAJ.

From the cost-clerk the completed order goes to the sales de-
partment where the selling price is entered upon its face, together
with the terms of sale, and then goes to the book-keeper and is
entered upon the ledger. At this point it becomes an item of the
financial accounting, and after being entered upon the ledger, an«i
having the cost and selling price entered upon the sales distri-
bution book and upon the order record book, it is filed away with
all the other production-orders, in boxes of suitable sire, alphabeti-
cally arranged and resting in pigeon holes in a large fire-proof

146 THE COMPLETE COST-KEEPER.

vault opening from the counting room, easily accessible at any time
for reference. In an experience in the use of the system, ex-
tending over a period of seven or eight years, not one order has
been permanently mislaid. The order record-book, form A, has
its first four columns filled in from the tissue paper copy book in
which each order is copied. After such entry, as stated previous-
ly, the right-hand column of that book is a constant preventive of
the filing of orders without proper entry upon the general ledger.

Thf Commercial Accounting.

The following books are used in tne commercial accounting:
General Ledger, Cash Book, Journal, Voucher Book, Bills-
Receivable Book, Sales Distribution Book, Freight Distribution-
Book, Purchase Distribution-Book, Incoming Invoices, A^ouchers,
Commission-Sales Book, Commission-Sales Statement, Commis-
sion Statement, Consignment Book, Shipping Memorandum, Ex-
pense Ledger.

General Ledger. The general ledger is shown by form
AU. It is of the cut-leaf type, divided into two volumes;
one A to K inclusive, and one L to Q inclusive, and is
designed for use for one year only. The pages are 13 inches
wide by 16 inches high. Each page and cut page is ruled
for two months, making six pages for each account for the
year. That is, one full leaf, then two cut leaves, then one full leaf,
etc., throughout the book. Each page will receive eight accounts
and each account is ruled to receive eleven order numbers and
eleven postings. Both debit and credit postings are entered in the
same column under the word "sundry," all debits in black ink and
all credits in red ink. This is common bank-practice, and is not
productive of confusion or inaccuracy. Under the heading of each
month the first column records the balance upon the first of that
month as taken from the totals on the last day of the preceding
month, and it is placed on the top line in the space allotted to that
account, either in black or red ink according as it is a debit or
credit The next column, headed "orders," is used for entry of pro-
duction-orders. If reference is had to the first page of the produc-
tion-order form it will be noted that a space is left for the date
of charge, and the amount of money value of the order, as charge-
able to the customer. Instead of journalizing these orders or writ-

THE COMPLETE COST-KEEPER. 147

ing them again in a sales book, the order is entered directly upon
the ledger, the only entries made being the date of charge, which
is the day the job was finished, as stamped upon the face of the
order before its return to the counting room, the number of the
order, and the amount in dollars and cents. In order that the
treasurer, in inspecting the ledger, may know the terms of the
order, an index-letter is placed before the order number when the
order is priced, A standing for spot cash, B for thirty days net,
C for sixty days net, and so on, as may be chosen.- This direct
ledger entry of the orders gives the debit side only. To get the
credit side, at the end of every month the ''amount" column for
the month. under the head of "orders," is footed on each page of the
ledger. The total of each page is drawn off on a loose sheet of
paper, and the grand total is passed, in red ink, to the credit of the
sales account for that month, making that single credit sum equal
all the debit sums of the order column for the month. After the
orders are entered in the ledger they are entered in the sales dis-
tribution book, where the number of the order is noted and the
value thereof is placed in the column of the department or brancii
which should have credit for the sale. At all times the total foot-
ings of the sales distribution columns equal the total credits for
the sale account. The columns under "sundry" receive all the post-
ings from the cash book, journal, voucher book, and bills receiv-
able book, and are provided with proper columns to indicate the
date, the book from which the posting was made, the folio of same,
and the amount of the posting. At the end of the month any bal-
ance is carried forward to the next balance column, and the pro-
cess is repeated for the ensuing month. In transferring balances
from one month to another, it is found in actual practice, if the
collections have been made according to good business usage that
these balances can be arrived at practically by inspection so that
the mental effort demanded of the book-keeper is not greater than
that called for by the ordinary style of ledger, and there is no
ruling off to be done. The spaces as ruled for allotment to each
account are found generally sufficient in practice, hut in case of
some very active accounts it has been found necessary to use two
spaces. In case some account which normally would be amply
provided for by one space should be abnormallv active in orders
during a certain month, and the entire space should be occupied

148

THE COMPLETE COST-KEEPER.

II-

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J-

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THE COMPLETE COST-KEEPER.

149

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under the order column, any over-
plus orders may be entered through
the medium of the journal, charging
the party and crediting sales ac-
count, but after the experience of
the first year there appears to be
very little difficulty in making suit-
able allotments. In the front part
of the ledger, A to K. a number of
leaves ruled as shown by form
AAU are inserted for the purpose of
recording bills payable. At the
right of the heavy line are three
columns for the day, month and
year when note was issued ; next,
when payable ; then, where paya-
ble ; next, day, month and year
when due, and to the extreme right
the amount of note. To the left of
the heavy line the spacing is for
the day, month and year when
paid. Next space is for remarks
and then comes amount column.
Each letter of the alphabet is usually
given one page or two pages the
book being provided with sufficient
leaves for that purpose.

Cash Book. The cash-book page
is 13 inches wide x 16 inches high,
ruled as shown by form AV.

As business is currently done
with four local banks and the works
cash drawer, the cash book is ruled
as shown. When checks are receiv-
ed they are entered on the left-hand
side, the first column being for the
date, the second tor the account to
be credited, the third for the items

150

THE COMPLETE COST-KEEPER,

paid, the fourth for the book-
keepers ledger folio, the fifth
for the amount of payment.
So far the book is like any or-
dinary cash book. The next
five columns indicate where
this money is deposited, and
the cashier in making his en-
try determines at once, if the
cash item be a check, at which
bank he will deposit it, and
enters it directly in the proper
column. If it is actual cash,
he, of course, enters it in the
cash-drawer column. In mak-
ing payments the same rule
applies ; the last five columns
indicating, in case of a check,
which bank is drawn on, or if
actual cash, that it comes
from the drawer. If at any
time it is desirable to draw a
check upon one bank and de-
posit it in another, that trans-
action is very simply made
by writing in red ink upon
each side of the cash book
under its proper date '-cash
transfer," and inserting the
amount in the column of the
bank where it was deposited
on the left-hand side, and in
the column of the bank from
which it was drawn on the
right-hand side. This would
apply also to a deposit from
the cash drawer to a bank or
to the withdrawal of funds

THE COMPLETE COST-KEEPER. 151

from a bank to place in the cash drawer. At first glance
it might seem difficult to check the bank deposits with
the bank book, because in the cash book the items are not combined
in the total of each individual deposit. This, however, is not the
case, for the reason that deposits are made consecutively, and in
almost every case the cashier in checking with his bank book, will
find the additions of the groups to correspond with his bank-book
items. If, however, there should be a question, as the deposit
slips are all copied before going to the bank, reference can be made
to any deposit slip and full information at once obtained as to the
deposit. In active practice this is rarely necessary.

Journal. The journal used does not vary materially from the
standard stock journal. It is made to order, for the purpose of
maintaining uniformity in size with the other books.

Vouchers. The voucher is 8^ inches wide x 7 inches high. It
is printed in copying ink and ruled as shown by form AW. When
an invoice has been properly checked, it is passed to a cashier's
clerk who enters it upon the voucher. This voucher at this time
is not made in full form ; it is not dated at the top, that not being
done until it is issued. The date of the invoice, or it may be of
several, and the amount, are noted in the first two columns at the
left. If there be any deduction noted upon the invoice at the time
of making the voucher, it is entered under the head of "deduc-
tions." The account to which this particular voucher is to be
charged is specified at the lower left-hand corner, below the foot-
ings of the invoice or invoices. By reason of the invoices being
distributed upon the distribution book, the great majority of
vouchers are chargeable direct to purchase account. After it is
filled out as above, the voucher is handed to the book-keeper, who
enters it upon the voucher book, gives it the proper number, and
places his date of entry opposite the initials V.B. It is then re-
turned to the treasurer who places it in a file in order of date when
payable according to terms. When a particular invoice or account
becomes due, the treasurer removes the voucher from the file, daten
it, makes the deductions already shown, or any others proper by
reason of cash discount or otherwise, and fills out the lower por-
tion of the voucher for the net amount of the settlement, inserts
the name of the bank which he wishes to pay the voucher, and
signs it. As all of the writing upon the voucher is done in copy-

152

THE COMPLETE COST-KEEPER.

Form AX.

Tank Builder's Weekly Report for loo . .

Pav Roll.

(0
Name.

il(2) Time for week on
! Jobs as Follows.

(3)
Total
Time

(4)

Rate

Per HV

(5)
Amount

(6)
Deduct
Board.

(7)
Pay
Men.

1' .1 1 M 1 1

)
.EPORT.

..190..
Job Boss.

ockct on Back, 3X inches wide.

riLDER'S WEEKLY E
I Ending

;

WW.
\

*■

ll : . : : : .
I 1 -

t- ----- -

^^1
^ ^

TAN
C

Cash Account.

Received.

Amount

Paid Out.

Amount

Balance on hand (12)
Rec'd from

S. W. &Co. (13)

....

••

Pay Roll (Column 7) rs)
Board which we deduct

(Column 6) (9)

Board which we stand (10)

Sundries.item'd as follows: (11)

....

.. .1

INSTRUCTIONS.

Fill out columns i, 2, 3, 4 and 6 in Pay Roll,
and items 9, 10 and 11. and send in every Sat-
urday nieht. We will fill in the rest and send Job BoSS

back with the money. When you get the

money, sign this sheet and return to us. . j j

Form AX.

Tank Builder's Weekly Report. Size, 8J^ inches wide by 14 inches high. Docket
on back is reproduced on front to save space.

THE COMPLETE COST-KEEPER.

153

Form AXX. (Back.)

GENERAL.

Name of Boss.
Address

INSTRUCTIONS.

This report must be made out DAILY and forwarded by FIRST
MAIL, unless job is remote from postoffice. In that case it is to be
made daily, and all for the week are to be sent with the pay roll sheet.
This report is to show each man's daily time, and what work he did.
Under the head of "General." furnish such information concerning
the jobs as may not be given on opposite page. Use separate sheet for
each tank.

Form AXX. (Back.) Sise. 8)^ inches wide by 14 iocbet high.

154'

THE COMPLETE COST-KEEPER.

Form AXX. (Front.^

Tank Builder's Daily Report for i

Tank. Job No

Names.j|»-

Unload ing

........

Making Horses and Ells

Fitting up Bottom

Riveting Bottom and Bot- (

torn Angle Iron (

Putting on First Ring

Hours

Sheets

Riveting First Ring -s

Lowering Bottom

Hours .
Sheets .

Raising Scaffold for 2d Ring.
Putting on 2d Ring

....

Riveting 2d Ring -j

Raising Scaffold for 3d Ring.
Puttine" UD ■^d Rine

Hours

Sheets

Rivetiner "^d Rine ^

Hours

Sheets .....

....

Raising Scaffold for 4th Ring
Putting up 4th Ring

Riveting 4th Ring -j

Raising Scaffold for 5th Ring
Putting up 5th Ring

Hours .....

Sheets .1

Riveting 5th Ring ■<

Raising Scaffold for 6th Ring
Puttine" uo 6th Rincr

Hours . i . . . .

Sheets . i

Riveting 6th Ring -j

Raising Scaffold for 7th Ring
Puttino^ uo 7th Rincr

Hours .1

Sheets

Riveting 7tli Ring |

Work on all Top Angle Iron. .

Hours .

Sheets .

. .

Puttincr on Roof

Calking Bottom |

Calking First Ring -j

Calking Second Ring |

Calking Third Ring |

Calking Fourth Ring |

Calking Fifth Ring |

Calking Sixth Ring |

Calking Seventh Ring |

Calking Roof

Hours .
Sheets .
Hours .
Sheets .
Hours .
Sheets .
Hours .
Sheets .
Hours .
Sheets .
Hours .
Sheets .
Hours .
Sheets
Hours .
Sheets .

PaintincT • ...

i Clean'g up and Sliipp'g Tools

Form AXX. (Front). Size, %% ins. wide X 14 ins. high

THE COMPLETE COST-KEEPER. 155

ing ink, and as the voucher is printed in copying ink, it is then
copied in a tissue book which serves as check stub-book, and
mailed. Previous to copying it is entered upon the cash book, and
the amount inserted in both the total column and the column of the
bank which shall pay same. The entry upon the cash book is made
in the same form as though the voucher were to be posted direct! »%
in the general ledger, to the party in whose favor it was made.
Inasmuch as this is not the case, and it is to be posted upon the
voucher book, in order that there may be no mistake by the book-
keeper, and that it may not go on the ledger, the treasurer, in mak-
ing his entry, records the number of the voucher in the folio
column of the cash book, placing the letter **V" before it. The
book-keeper in posting then turns directly to the number indicated
upon the voucher book and posts said amount on the side of the
book marked "payment." Any deduction which has been made
from the face of the invoice is charged upon the journal at the
same time to the same voucher, and credited to the proper account.
If the voucher is to go to a personal ledger account it is marked
"red" in place of a distribution account and is entered on both
sides of the voucher book in red ink so as to obtain a serial num-
ber for it. These red figures are ignored in footing the voucher
book. In entering voucher on cash book, the folio column is left
open in this case and the book-keeper posts directly to the ledger.

This same form of voucher is used, with a slight alteration,
for notes or acceptances ; the vouchers used for that purpose have
the word "demand" omitted and a line inserted in its place for
record of date payable. These are called "time vouchers," and are
invariably taken the same as acceptances for time bills. The trea-
surer, when issuing a voucher, having a personal knowledge of the
balances due the firm on the general ledger, knows whether there
is any book account of any kind against the party in whose favor
the voucher is drawn. If such drawback exists a journal entry is
made charging the voucher and crediting the same party's book
account in the same manner as though it were any other deduction.

Voucher Book. The voucher book pages are 13 inches wide
X t6 inches hiirh. The left-hand page is ruled like form AAW.
and the right-hand page like A AX.

As detailed under the head of vouchers, the voucher is enters!
upon the voucher record book upon the right-hand side of the

156

THE COMPLETE COST-KEEPER.

Form AW
No.

STRUTHERS, WELLS & CO.

Warren, Pa 190 .

Struthers, Wells & Co., in account with

nvoices.

Date. 1

Amount

Deductions

Items.

Amount

Voucher.

Received from Struthers, Wells & Co.

in settlement of above account.

Dollars, $,

(Sign here. )

If above settlement is not correct or satisfactory, return this voucher
at once with full particulars.

The of Warren, Pa., will pay this Voucher on Demand

if presented with receipt properly signed by without

alteration or erasure. STRUTHERS, WELLS & CO.,

V. B

Treasurer.

Voucher. Form AW. The docket form on the left-hand side of back of this voucher is re-
produced in face of voucher to save space. Size of voucher, 8J4 inches wide by 7
inches high. Size of docket, on the left-hand side, inside double ruled blue
lines, lYz inches wide by 8 inches high.

THE COMPLETE COST-KEEPER. 157;

heavy line ruled just to the left of the numbers in the book. These
vouchers are entered directly, giving first the date of entr>', next in
whose favor, next the amount. Then the distribution is placed m
the proper column. There are three columns with printed head-
ings, as shown, with two principal headings aside from the pur-
chase account, viz., freight and stationery. Those are the two
accounts most used where the invoices are distributed directly,
and not upon the purchase distribution book. There are, as will
be noticed, a number of blank columns which may take any head-
ings desirable. These columns are all footed at the bottom of each
page, and are posted from such footings to their proper accounts
in the ledger. It will be observed under the heading of "payment**
that for each voucher there are three lines for postings ; this is be-
cause there are frequent deductions requiring journal entries, and
the postings for those'would come from the journal while the net
amount of the voucher would come from the cash book. Gener-
ally there are not more than two postings to any voucher, but
for safety and to prevent crowding, three spaces are provided.
Since the postings of the total amount of vouchers entered, as
they appear at the bottom of each page, make a debit in the ledger,
the amount of vouchers standing open at the time of making any
trial balance must be considered a credit. Therefore, in making
up the trial balance all vouchers standing open are drawn off on
a loose sheet of paper, and the total is placed in the credit column
of the trial balance, opposite the words "voucher book." This
amount gives the total amount owed by the concern on unpaid
bills. The "amount" column under the head of "payment" is never
footed until all vouchers located in the book prior to that page arc
paid, although that page itself may be completely closed ; so that
when the book-keeper finds the last page that is footed he can com-
mence at that point to draw off his unpaid vouchers, knowing that
everything previous to that has been closed. This obviates the
necessity for keeping a ledger account with each firm from whom
goods are bought, and still preserves the advantage of recording
on the general books as liabilities all bills owed by the concern.
Many book-keepers keep invoices off of the books until paid ; the
disadvantage of this proceeding is the failure of the commercial
books to show all the liabilities of the concern at the end of each
month. Another advantage of the method used is that all invoices

158

THE COMPLETE COST-KEEPER.

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THE COMPLETE COST-KEEPER. 159

are completely closed when settled, leaving no tag ends for a book-
keeper to check over on his ledger.

Bills Receivable Book. This book is of standard size, 13
inches wide x 16 inches high, and ruled as shown by forms AY
and AZ.

This book carries a complete record of the history of all
notes or acceptances. It may be termed a combined journal and
ledger, in reference to the bills receivable, giving knowledge not
only of the amount of bills receivable on hand and available for
discount, but an itemized exposition of all notes indorsed, and
place of discount. In this book spaces are allotted to each letter
in alphabetical order, so that it is easy to turn to the notes of any
individual. The scheme of the book is as follows:

All that portion of the book to the left of the wide column
headed "number'' may be considered as the journal portion, since
all notes are entered directly in this space, from w-hich the notes
are posted into the proper account. The different columns give
the date of entry, the date of the note, the maker of the note, the
indorser if any,, where payable, length of time to run, due date,
and, farther to the right in the column headed **face," the amount
of the note. In the column headed ''credit" is inserted the account
which is to receive credit for the note. If more than one account
is to receive credit, the necessary number of lines are taken and
the several amounts are inserted opposite the proper account in
the column headed "short items." If only one account is to be
credited no amounts are inserted in the "short items" column, but
the total amount of the face is posted. In the "folio" column tlie
ledger page is inserted, and the narrow column is for the posting
check-mark. The total amount in the "face" column makes the
debit to bills receivable, and the credit for the double entry, of
course, rests in the credit postings. When a note is paid without
having been discounted, the amount is posted to the credit of bills
receivable, directly opposite the proper note, in the space headed
"credit," giving the date, stating how closed, the folio from which
the posting was made, and the amount. If there is interest on the
note, the entry must be made in the cash book so that "discount
and interest" receives credit, and the amount credited to bills re-
ceivable exactlv equals the face of the note. If the note is renew-
ed, the new note is entered upon the left of the "number'' column

i6o THE COMPLETE COST-KEEPER.

and posted from that side to the credit side, opposite the note
closed. The book is numbered consecutively on each line, and the
note takes the number of the line upon which it is entered. In the
case of a renewal the entry made in the column ''how closed,''
gives a reference to the number of the renewal note ; that is, the
entry says, ''renewed by number so and so," as the case may be.
Record is made of the renewal under the sub-head of "credit," re-
ferring to the number of the note which was renewed. In case a
note is discounted, an entry on the left-hand side of the cash book
credits the face of the note, entered in the column of the bank dis-
counting same, with a charge on the opposite side to "discount and
interest" to cover the amount of discount entered in the column of
the same bank, so that a subtraction of the discount on one side
from the face of the note on the other, gives the net amount of
bank credit. This makes the posting to the credit of "bills dis-
counted" equal the face of the note as entered. This credit to
"bills discounted" is posted on the right-hand side of the bills dis-
counted portion of the book, directly opposite the proper note,
showing date, where discounted, amount, and the folio from whicli
the posting was made. In taking off the trial balance, the "bills
receivable" and the "bills discounted" are taken off separately.. All
notes standing open in the "face" column of "bills receivable,"
without any postings under the credit column of same, are drawn
off as being the total debit to "bills receivable" for the trial bal-
ance, and if none of these notes has been discounted they all show
as on hand and available for discount, and all notes standing open
in the credit column of "bills discounted" are taken off and stand
in the cerdit column of the trial balance opposite the "bills dis-
counted" account. This amount shows, at every trial balance date,
the exact amount of indorsements for which the concern is con-
tingently liable. To determine the net amount or actual amount
of "bills receivable" available, it is only needful to deduct "bills
discounted" from "bills receivable." This book tells how much
is under indorsement, and whose paper it is, and is proved accu-
rate at each trial balance. After a note is discounted the credit
column of the "bills receivable" account and the debit column of
the "bills discounted" account, are open until the note is paid or
renewed. It is customary to go through the "bills receivable"
book once a month and examine the discounted notes. All those

THE COMPLETE COST-KEEPER. i6i

which have been paid are closed by a red-ink entry made in each
of the foregoing two columns, giving the date and writing the
word "paid," and entering the amount. This appearing in both
the credit column of "bills receivable" and the debit column of
''bills discounted," gives the debit and credit needful to maintain
the equilibrium of the trial balance. If a note becomes due and is
not paid, and is taken up, the check is entered on the right-hand
side of the cash book and charged to "bills discounted," giving
name of note. It is then posted to the debit column of that ac-
count, closing the bills discounted account, and leaving only the
bills receivable account open, which nullifies the discount, and
shows the note to be held by the establishment. If a debtor has
arranged to renew his note with the bank, with the work's indorse-
ment, the indorsement is made and the note is entered upon the
"bills receivable" account, credited to "bills discounted" as a re-
newal of number so-and-so, and the posting is then carried directly
across the page to the credit side of "bills discounted." and the
accountant also turns to the note renewed and closes it in red
ink, as idicated above, with entry in the "how closed" column, "re-
newed by No. so-and-so."

Forms AY and AZ give examples of the use of this book.
Note No. 1440 was credited to one account and never discounted,
standing open as a "bill receivable" at the time of the observation.
No. 1442 was credited to two accounts, and when due was renewcl
by No. 1443, never having been discounted. No. 1443 ^^'^s credit-
ed to "bills receivable" as a renewal of No. 1442 ; was never dis-
counted and was paid at maturity. No. 1444 was credited to one
account ; was discounted ; was afterwards taken up by the works,
and written back into "bills receivable," and later was paid. No.
1445 was credited to one account, discounted, and paid at bank at
maturity. The credit here to B. R. and debit to B. D. is written in
red ink directly upon the book. No. 1446 was credited to one
account, discounted, and stands open both in B. R. and B. D. In
the trial balance this would make the statement of the two ac-
counts as follows: bills receivable, $620.00; bills discounted,
$500.00, leaving net amount available for discount, $120.00.

Sales Distribution Book. This book has pages 16 inches wide
X 13 inches high, and is shown by forms BA and BB.

Each production-order is entered in the ledger and in the
sales distribution book, the number of the order being placed in the
solid column, under the proper division, and the amount of the

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order in its proper division. This gives the total sales at the end
of each month made by the various departments and branches, con-
cerning which it is desirable to keep a record. After this is done
by the book-keeper one of the office clerks enters the cost of each
order in the ''cost" column opposite its selling price, so that this
book tells at the end of each month the difference between the sell-
ing price of the goods sold in each division and the flat cost of
those goods, the total amount showing the gross profit on the
goods for that month. The same clerk also inserts opposite each
order the purchaser's name for future reference.

Freight Book. This book has pages of standard size, and
ruled as shown by forms BC and BD.

Upon the payment of freight bills they are entered on the
freight book, under the following headings:

Date of payment, number of voucher, name of railroad, paid,
date of freight, point of shipment, name of shipper, articles, car
number, weight, rate, and amount of freight. Freight is charge-
able to various accounts. The voucher itself, when issued, is
charged directly to the freight account upon the ledger. The dis-
tribution of the freight during the year is kept upon the right-
hand or distribution side of the freight book, as shown by the vari-
ous headings. That freight which is distributed to the personal
column is on material sent to the works for repairs, etc., upon
which the shipper fails to pay freight. Inserted under the head
of "chargeable," in the column headed "to whom," is the name of
party to whom appropriate charge is to be made. At frequent in-
tervals the book-keeper takes these personal amounts off this book,
and makes journal entries of them, charging to the parties and
crediting to the freight account, inserting the date when so charg-
ed. Footings of distribution are carried forward from month to
month until the end of the year. At that time the freight account
is credited and the various items indicated by the column headings
are charged with the yearly footings, thus closing the freight ac-
count, as indicated in the description of the whole accounting
system.

Purchase Distribution Book. This book has pages of stan-
dard size, 13 inches x 16 inches, ruled as per forms BE and BF.

When invoices received are checked up, and the terms and
prices certified as correct by the proper clerk, the amount of freight
paid upon the invoice is entered, and any deduction for excess
freight is noted, the invoice is charged to the proper department

THE COMPLETE COST-KEEPER.

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by entry upon the purchase distribution book, and also to the
proper account of that department. At the end of the year these
columns are all footed, their totals credited to purchase account,
and charged to the several accounts to which they have been dis-
tributed.

Incoming Invoices. This form BG, is 13 inches wide x <S^
inches high. In ordering goods from outside parties one of these
invoice blanks is always sent with the order, so that all invoices
may be of uniform size for filing, and to assist in making distri-
butions. When goods are received freight is entered on invoice,
deductible freight noted and any other deductions specified, and
the invoice is checked and certified correct. Under the head ot"
"items for transfer book," the invoice is distributed to the several
accounts entered there, all items being distributed with freight
added. If the goods are for an item not listed on the purchase dis-
tribution book, the name of the account chargeable with same is
entered in the blank line under purchase account at the head, with
addition of freight, and a deduction made of an equal amount of
freight. This is done so that the seller shall receive the face of his
bill when paid. If distribution is made on invoice, the face of the
invoice is entered opposite "charge purchase account,*' the invoice
is then passed to the counting-room clerk for voucher distribution,
as described under head of vouchers. The charges thus made to
purchase account do not have freight added, but the freight ob-
tained from the freight book at the end of the year makes purchase
account balance the total distribution items which have freight
added.

Commission Book. Pages are of standard size, and ruled as
per forms BJ and BK.

As fast as production-orders are charged, those that carry a
commission to any party are entered upon the commission book,
giving the date of each order, number, to whom sold, items, the
amount, terms, and selling price. At the same time, under the
head of "commissions," the name of the party to receive the com-
mission is entered. Commissions are not paid until payment for
the goods is received, but it is desirable that commission liabilities
should appear upon the books at the end of each month, thus
charging the sales account of the department or branch receiving
credit for the same with the amount of these commissions for that
month. These are credited "commissions payable" account; ex-
planation of which appears in the schedule of accounts following
There is also made out at that time and sent to each party to whom

THE COMPLETE COST-KEEPER.

167

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Prices and terms correct

Extensions correct

Approved for payment.

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M. S. purchase, - - f

M. S. maintenance, - - $

Smithy purchase, - - $

Smithy maintenance, - - $

B. S. purchase, - - - $

B. S. maintenance, - - $

Foundry maintenance, - f . . . .
Foundry pig, - - -•....

Foundry scrap, - - 9

Foundry coke, - - - •

Plant maintenance, - - f

Stationery, - - - •

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This will copy,
'lease mail this in a long envelope,
on this line.) 190. .

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i68 THE COMPLETE COST-KEEPER.

commissions will probably be due, a statement described under
head of "sales statement" which shows the sales upon which he is
entitled to commission during that month. At the end of each
month also, the settlement of such accounts as have been closed is
noted in the "settlement" column. The amount of such commis-
sions is then placed in the "amount'' column under the head of
"commissions," and a journal entry made, crediting proper par-
ties with commissions and charging "commissions paid" account ,
description to follow. At the same time a commission statement
is sent to the party showing the details of such credit. The date
of entry of such credit is also inserted in the credit column. The
settlement column gives the date of settlement, how settled, amount
and description of discount, if any, and the net amount received.
As commissions are paid only upon the net proceeds of the sale.
each month the probable commission is credited to ''commissions
payable," and charged to sundry sales account. If in settlement
there are deductions ,an entry must be made charging "commis-
sions payable" and crediting the proper sales account the differ-
ence between the commission improperly credited and the true
amount credited the individual.

Commission-Sales Statement. This is 8J inches wide x ii
inches high, and as per form BL. This is used to give each com-
mission salesman a memorandum of his sales for the preceding
month ,so that he can check them up and correct errors, if any.

Commission Statement. This is of same size as preceding,
and as per form BM. This is the notification at the end of any
month that the salesman has been credited with commissions on
collections made during the preceding month, and giving him an
itemized list of the accounts upon which these commissions are
credited.

Record of Machinery Consigned. This book has standard-
size pages, and is as per form BN. It is used to keep a memoran-
dum of goods consigned to various parties ; when goods are sent,
the date, items and value are inserted. If freight is prepaid, the
amount expended for freight is inserted in the third column. The
conditions upon which the goods are consigned, if any, are stated
in the "conditions" or "remarks" column. When consignments
are reported sold the date of sale is entered opposite the piece of
machinery, and the date of charge against the seller. But one piece
of machinery is recorded upon a line, so that the charge of item
comes directly opposite the specific piece of machinery sold. Con-
signed goods are inventoried from this consignment book.

THE COMPLETE COST-KEEPER.

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Form BO.

NOTICE TO ORDER DEP'T.

Order 190 .

Now Ready in Department

For ,

At.

.Shipment, by.

SHIPPING CLERK WILL MARK AND SHIP AS FOLLOWS:

Notice of Shipment from Struthers, Wells & Co.

No Warren, Pa , 190 ,

Shipped to

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Car Initial

s No Chai

'ges

No.

Items.

How Packed.

, Boxes Barrels Bdls. Kegs Pieces. Weight

Form BO. S/i ins. wide X 9 ins. high, printed in copying ink.

THE COMPLETE COST-KEEPER.

171

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No Term, 190..

Entered 190. .

Debt 9

Atty's Com

Judgment

Int. from 190

on our books 190. .

State of

STRUTHERS, WELLS & CO.
vs.

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THE COMPLETE COST-KEEPER.

Form BQ.

Order No.

For

PACKING LIST.

Warren, Pa., 190. .

Boiler.

Pes.

Items.

Rollers x

inch safety valve, with

bottom, set at lbs.

inch case steam gauge and syphon.

No water column.

Glass water gauge, with glass x

inch Globe valve for feed.

inch Check valve.

inch Gate valve.

inch Whistle.

inch Globe valve for main stop.

inch nipple

ti <i

X inch bushing

inch tee

Hand hole plates, yokes and bolts

No inspirator.

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Shipped as.
Packed by . ,

Form BQ. Size, 5 inches wide by 8% inches high.

THE COMPLETE COST-KEEPER. 173

Notice to Order Department. Form BO is 5H inches wide
X 9 inches high and printed in red copying ink, as shown. Above
and below the Hne marked "shipping clerk will mark and ship as
follows," the sheet is j^erforated. This shipping memorandum is
filled out above the upf)er perforation and in the ruled space, giv-
ing the number and description of items and how marked, in de-
partment furnishing the goods. This is passed to the assistant
su|)erintendent, who fills in the shipping direcitons below the sec-
ond perforation and passes it to the shipping clerk, who makes out
the proper shipping hill and tags. The notice of shipment is re-
turned to the office with the freight bill, and it is then copied in
a copying-press book and sent with the freight bill to the customer,
the press copy being the record of shipment, or "shipping book."

Suspense Ledger. This book has pages of standard size, and
is shown in form BP. At the end of each year accounts which are
considered bad or doubtful are charged off either to "former profit
and loss" or to "suspense account," as will be seen by reference
to those two accounts as explained below. In order that such
accounts may not be buried and that they may still receive the
same amount of consideration from the collection department as
though they stood upon the "general ledger," they are transferred
to the "suspense ledger." This book gives the name of the debtor
and his address, together with the date, items, and amount of his
charge. It also shows from what ledger and folio the account
came, and when charged off. It then gives record of any attempts
at collection and record of judgement, if judg^ient was obtained,
and when finally settled, if ever. There are two records on each
page.

All accounts, except the "voucher" account, "cash" account,
"bills receivable" account, and "bills discounted" account, are kept
upon the "general ledger." Special accounts which have no bear-
ing upon the general system are ignored here.

In the following explanation of accounts all of the accounts
that may be considered standard are shown, to explain the charges
and credits entering into each, and to show how each is closed
into another, progressively coalescing and producing totals, or
dividing and making application of their original or acquired
totals over to other accounts properly aflfected by them.

The .schedule of accounts with their descriptions and explana-
tions follow, and later will be .shown the interweaving of same at
the final closing of the book.

174

THE COMPLETE COST-KEEPER,

TOOLS AND MACHINERY.

Charges.

Credits.

I — Balance first of year.

2 — All tools bought for increase
and not to make good wear and
tear.

1 — Any tools sold.

2 — At end of year charge profit
and loss a percentage on balance at
first of year, for depreciation.

REAL estate.

Charges.

Credits.

I — Balance first of year.
2 — All real estate purchased.
3 — New building erected for en-
largement, not replacement.

Any real estate sold.

patents.

Charges.

Credits.

I — Balance first of year.
2— Cost of patents bought.

I — Cost of any patent sold.

2 — Any patent that has expired,
or has become valueless, should be
closed into current or former profit
and loss, as the case may be.

patterns.

Charges.

Credits.

Balance first of year.

It is believed that at the present rate of pattern making, the valuation
is not more than maintained. Tht^reforc, charges should not be made
to this account unless carefully considered.

suspense.

Charges.

I — Bad accounts of prior years,
2 — At end of year, bad accounts

of current year.

Credit balance of this account re-

(duces total of accounts receivable

in annual statement.

Credits.

I — Balance first of year.

2 — At end of year, a percentage
on gross sales of that year. t

3 — If, at the end of year, there
is a debit balance, charge it ofiP to
former profit and loss before charg-
ing bad accounts of, or making
credit for, current year.

THE COMPLETE COST-KEEPER.

175

FORMER PROFIT AND LOSS.

Charges.

Credits.

I — All losses, not bad accounts,
on business prior to current year.

2— Any debit balance of suspense
account at end of year, on business
of prior years.

3— Any deductions or allowances
on business of prior years.

I— All gains on business prior to
current year.

2— All bad accounts of prior years
reclaimed.

3— Close to profit and loss at end
of year.

GENERAL MERCHANDISE.

Charges.

Inventory first of year.

Credits.

This is inventory account of such
personal property as does not prop-
erly belong to any department or
warehouse. Each year pass enough
to profit and loss to leave a balance
equal to inventoried amount.

BILLS RECEIVABLE.

BILLS DISCOUNTED.

Charges.

I — Notes receiv-
ed.

2— Notes indors-
ed.

These in red ink.

Credits.

Charges.

These are entered to both B. R.
and B. D.

I— Paid at office. I i — Taken up by
2^Paid at bank. us.

2— Paid at bank.

Credits.

I — Notes dis-
counted.

2 — Notes indon-
ed.

Discounted notes

10 bills payable.

Charges.

Credits.

Payment of note or time voucher.

Notes or time vouchers given.

II VOUCHER BOOK.

. Charges.

Credits.

1— From cash book.
2— From journal ; bills payable
and deductions.

All vouchers drawn. Vouchers
for ledger accounts are entered in
red and on both sides, for number
record only, and are not included in
footings. Other voucher footings
are posted to debit of various ac-
counts as distributed. Total of the
vouchers standing open is a liability.

I/-6

THE COMPLETE COST-KEEPER.

12 CASH.

Charges.

Credits.

I— Balance first of year.
2 — Cash received; extended into
appropriate location column.

Cash paid; extended into appro-
priate source column.

13 ADVERTISING.

Charges.

Credits.

All amounts paid for advertising.

Close into general expense at end
of year.

14 TRAVELING.

Charges.

Credits.

All amounts paid for traveling.

Close into general expense at end
of year.

15 telegraph and telephone.

Charges.

Credits.

Telegraph and telephone service.

Close into general expense at end
of year.

16 insurance.

Charges.

Credits.

Insurance on plant.

Close into general expense at end
of year.

17 WATER RENT.

Charges.

Bills for water.

Credits.

Close into general expense at end
of year.

Charges.

Credits.

One year's taxes on plant.

Close into general expense at end
of year.

THE COMPLETE COST-KEEPER.

177

WATCHMAN.

Charges.

Wages of watchman.

Credits.

Qose into general expense at end
of year.

20 OFFICE SALARIES.

Charges.

Credits.

Salaries of employees in main
office, draughting office, and general
officials.

Close into general expense at end
of year.

21 BARN.

Charges.

Credits.

All wages and expenses of yard
gang, team, and locomotive crane.

Close into general expense at end
of year.

LEGAL SERVICE.

Charges.

Attorney's fees and similar items.

Credits.

Close into general expense at end
of year.

23 stationery.

Charges.

Credits.

Printed matter, blank books, post-
age, etc.

Close into general expense at' end
of year.

24 ■ONI) INTEREST.

Ch.\rces.

Credits.

Interest on bonds for one year.

Close into general expense at end
of year.

plant maintenance.

Charges.

Credits.

I — Inventory first of year.

2 — All expenses incurred in mai.i-
taining the value of the plant, ex-
cept that of tools and machincr>- ;
that expense is chargable to the de-
partment in which the repaired to >1
is located.

Close into general expense at end
of year, enough to leave a debit
balance equal to inventory at last of

1/8

THE COMPLETE COST-KEEPER,

DISCOUNT AND INTEREST.

Charges.

Credits.

I — All discount or interest paid.

1— All deductions from purchases

2 — All allowances to customers

for cash discount.

for early payment.

2— All discount or interest re-

ceived.

3— Close into general expense at

end of year.

BRANCH expense.

Charctes.

Expenses of each branch. (These
branch-expense accounts are to have
separate headings for each branch,
and expenses kept separate.)

Credits.

Close into general expense at end
of vcar.

sundry expenses.

Charges.

Credits.

All expenses not otherwise classi-
fied.

Close into general expense at end
of year.

29 FJ.KCTRIC ]

lighting.

Charges.

Credits.

All amounts paid for general elec-
tric illumination.

Close into general expense at end
of year.

general

EXPENSE,

Charges.

Credits,

Charged with following

accounts

Close at end of year into depart-

at end of year :

ment loss and gain accounts, in pro-

Advertsing,

portion to amount of materials and

Traveling,

labor converted into sales in each

Telegraph and 'Phone,

department.

Insurance,

Water Rent,

Taxes,

Watchman,

Legal Services,

Barn,

Office Salaries,

Stationery,

Bond Interest,

Plant Maintenance,

Sundry Expense,

Discount and interest,

Branch Expense,

Electric Lighting,

THE COMPLETE COST-KEEPER.

179

LABOR PAID.

Charges.

Credits.

Amount of wages paid.

.At end of year close into labor
payable.

LABOR PAYABLE.

Charges.

Credits.

At end of year amount from labor
paid account.

Credit this account each pay-day,
and charge following accounts
amount of pay-roll:

Machine-shop productive labor.

Machine-shop unproductive labor,

Boiler-shop productive labor.

Boiler-shop unproductive labor.

Foundry productive labor.

Foundry unproductive labor,

Smithy productive labor.

Smithy unproductive labor,

Barn account,

Office salaries,

Watchman.

Plant maintenace,

Warehouse.

MACHINE SHOP PRODUCTIVE LABOR.

Charges.

Wages paid to all employees in
machine shop, working on material
entering into product.

Credits.

Close at end of year to machine-
shop loss and gain account.

MACHINE SHOP UNPRODUCTIVE LABOR.

Charges.

Wages paid foreman, clerks, de-
partment engineer, and unproduc-
tive helpers.

Credits.

Close at end of year into machine-
shop loss and gain account.

BOILER SHOP PRODUCTIVE LABOR.

Charges.

Credits.

Wages paid to all employees in
boiler shop, working on material en-
tering into product.

Close at end of year into boiler-
shop loss and gain account.

i8o

THE COMPLETE COST-KEEPER.

BOILEB SHOP UNPRODUCTIVE LABOR.

Charges.

Credits.

Wages paid foreman, clerks, de-
partment engineer, and unproduc-
tive helpers.

Close at end of year into boiler-
shop loss and gain account.

FOUNDRY PRODUCTIVE LABOR.

Charges.

Credits.

Wages paid to all molders and
core-makers.

Close at end of year into foundry
loss and again account.

FOUNDRY UNPRODUCTIVE LABOR.

Charges.

Wages of foreman, men not mold-
ers or core-makers, department
engineer, and all pattern shop labor.

Credits.

Close at end of year into foundry
loss and gain account.

39 SMITHY PRODUCTIVE LABOR.

Charges.

Credits.

Wages of all men ot working: on
material entering into product.

Close at end of year
loss and gain account.

into smithy

40 SMITHY UNPRODUCTIVE LABOR.

Charges.

Credits.

Wages of men not working on
material entering into product.

Close at end of year
loss and gain account.

into smithy

41 warehouse.

Charges.

Credits.

I — Inventory first of year.

2 — All purchases intended for use
in various departments, as requisi-
tioned.

3 — Wages of storeroom clerk and
laborers.

I — All goods furnished depart-
ments on requisitions.

2 — Close into profit and loss ac-
count at end of year enough to
leave a debit balance equal to the
current inventory.

THE COMPLETE COST-KEEPER.

i8i

FREIGHT.

Chabgbs.

Credits.

All freight and express charges

At end of year following accounts

paid.

are charged as per freight distribu-

tion book:

P. & S. 0. W. engine sales,

P. & S. 0. W. boiler sales,

Our 0. W. engine sales.

Branch O. W. engine sales,

Our 0. W. boiler sales,

Branch boiler sales.

M. S. general sales.

B. S. general sales.

Branch engine sales.

Smithy sales,

Branch O. W. boiler sales,

Foundry sales.

Branch smithy sales.

Purchase freight.

Branch foundry sales.

Sundry expense,

Personal accounts (during year).

Any other sales accounts, treated

separately.

SALES.

Charges.

Credits.

At end of year amounts from
sales-distribution book are credited
following accounts :

P. & S. oil well engine sales.
Our oil well engine sales,
Branch engine sales,
Machine-shop general sales,
P. & S. oil well boiler sales,
Our oil well boiler sales,
Branch boiler sales.
Boiler sho general sales.
Branch smithy sales,
Smithy sales.
Branch foundry sales.
Foundry sales.
Branch O. W. engine sales,
Branch O. W. boiler sales,
.\ny other sales accounts treated
separately.

During year, by all, sales charged
on ledger.

l82

THE COMPLETE COST-KEEPER.

COMMISSIONS PAYABL,E.

Charges.

Credits.

I — At end of year by charges to

Commissions on gross accounts of

commissions-paid acount.

all commission sales. Charge to fol-

2—During year difference between

lowing accounts :

commission on gross sales, as cred-

P. & S. oil well engine sales.

ited this account, and that on net

Our oil well engine sales,

sale, credited commissions paid ac-

Branch engine sales, (separate,)

count.

Machine-shop general sales,

P. & S. oil well boiler sales,

Our oil well boiler sales.

Branch boiler sales, (separate,)

Boiler-shop general sales.

Smithy sales,

Foundry sales.

Any other sales accounts (treated

separately.)

45 COMMISSIONS PAID.

Charges.

Credits.

Commissions credited individuals.

Close into commission-payable ac-
count at end of year.

p. & S. O. W. KNGINE SAlvES.

Charges.

Credits.

I — Returns and deductions.
2 — Commissions.
3 — Delivery freight.
4 — Close into M. S. loss and gain
account.

Credit for sales account at end
of year.

OUR O. W. ENGINES.

Charges.

I — Returns and deductions.
2 — Commissions.
3 — Delivery freight.
4 — Close into M. S. loss and gain
account.

Credits.

Credit from sales account at end
of year.

BRANCH ENGINE SALES. (Each page treated separately. )

Charges.

I — Returns and deductions.
2 — Commissions.
3 — Delivery freight.
Close into M.-S. loss and gam
account.

Credits.

Credit from sales account at end
of year.

THE COMPLETE COST-KEEPER.

183

MACHINE SHOP GENERAL SALES.

Charges.

Credits.

I — Returns and deductions.
2 — Commissions.
3 — Delivery freight.
4— Close into M.S. loss and gain
account.

Credit from sales account at end
of year.

p. & S. 0. W. BOILER SALES.

Charges.

I — Returns and deductions.
2 — Commissions,
3 — Delivery freight.
4 — Close into B.-S. loss and gain
account.

Credits.

Credit from sales account at end
of year.

our 0. W. boiler SALES.

Charges.

Credits.

I — Returns and deductions.
2 — Commissions.
3 — Delivery freight.
4 — Close into B.-S. loss and gain
account.

Credit from sales account at end
of year.

52 BRANCH BOILER SALES. (Each branch treated separately.)

Charges.

Credits.

I — Returns and deductions.
2 — Commissions.
3 — Delivery freight.
4 — Close into B.-S. loss and gain
account.

Credit from sales account at end
of year.

boiler shop general sales.

Charges.

Credits.

I — Returns and deductions.
2 — Commissions.
3 — Delivery freight.
4 — Close into B.-S. loss and gain
account.

Credit from sales account at end
of year.

i84

THE COMPLETE COST-KEEPER,

SMITHY.

Charges.

Credits

1 — Returns and deductions.
2 — Commissions.
^ — Delivery freiprht.
4 — Close into smithy loss and gain
account.

Credit from sales account at end
of vear.

55 BRANCH 0. w. ENGINE SALES. (Eacli branch treated separately.)

Charges.

Credits.

I — Returns and deductions.
2 — Commissions.
3 — Delivery freight.
4 — Close into M.-S. loss and gain
account.

Credit from sales account at end
of year.

56 branch 0. w. BOILER SALES. (Each branch treated separately.)

Charges.

I — Returns and deductions.
2 — Commissions.
3 — Delivery freight.
4 — Close into smithy loss and gain
account.

Credits.

Credit from sales account at end
of vear.

branch SMITHY SALES. (Each branch treated separately.)

Charges.

I — Returns and deductions.
2 — Commissions.
3 — Delivery freight.
4 — Close into smithy loss and gain
account.

Credits.

Credit from sales account at end
of year.

58 BRANCH FOUNDRY SALES. (Each branch treated separately.)

Charges.

I — Returns and deductions.
2 — Commissions.
3 — Delivery freight.
4 — Close into foundry loss anrl
gain account.

Credits.

Credit from sales account at end
of vear.

THE COMPLETE COST-KEEPER.

18;;

FOUNDRY SALES.

Charges.

I — ^lieturns and deductions.
2 — Commissions.
3 — Delivery freight.
4 — Close into foundry loss and
gain account.

Credits.

Credit for sales account at end
of year.

PURCHASE FREIGHT.

Charges.

Amount transferred from freigiu
account at end of year.

Credits.

1— .Amount of freight deductions
charged voucher account during
year.

2 — Close into purchase account at
end of vear.

PURCHASE.

Charges.

Credits.

1 — All material purchased outside

At the end of year the purctiase-

distributed on purchase-distribution

distribution book is footed, and the

book.

various amounts are charged to fol-

2—Freight paid on same; taken

lowing accounts :

fiom purchase freight account «t

Machine-shop purchase.

end of year.

Machine-shop maintenance.

Boiler-shop purchase,

Boiler-shop maintenance,

Foundrv maintenance,

Foundry pig.

Foundrv coke.

Foundry scrap.

Smithy purchase,

Smithy maintenance.

Barn acooimt.

Plant uiaiiit-nence,

Sundrv ex|>en.sc.

Warehouse.

(All purchases arc distributed

with freight added.)

MACHINE SHOP PURCHA.<;E.

Charges.

Credits.

I— Inventory first of year,
a— Material purchased outside for
use in manufactured product.

Clo.sc into department loss an'!
gain account at end of year enough
to leave a debit balance equal to
nirrent inventory.

i86

THE COMPLETE COST-KEEPER.

BOILER SHOP PURCHASE.

Charges.

I — Inventory first of year.
2 — Material purchased outside for
use in manufactured product.

Credits.

Close into department loss and
gain account at end of year enough
to leave a debit balance equal to
current inventory.

SMITHY PURCHASE.

Charges.

I — Inventory first of year.
2 — Material purchased outside for
use in manufactured product.

Credits.

Close into department loss and
gain account at end of year enough
to leave a debit balance equal to
current inventory.

FOUNDRY PIG.

Charges.

Credits.

I-
2-

-Inventory first of year.
-Purchase of pig iron.

Close into department loss and
gain account at end of year enough
to leave a debit balance equal to
current inventory.

FOUNDRY COKE.

Charges.

Credits.

I-
2-

-Inventory first of year.
-Purchase of coke.

Close into department loss and
gain account at end of year enough
to leave a debit balance equal to
current inventory.

FOUNDRY SCRAP.

Charges.

Credits.

I-
2-

-Inventory first of year.
-Purchase of scrap.

Close into department loss and
gain account at end of year enough
to leave a debit balance equal to
current inventory.

foundry

MAINTENANCE. (Material.)

Charges.

I — Inventory first of year.

2 — Unproductive material from

purchase account.

Credits.

Close into department loss and
gain account at end of year enough
to leave a debit balance equal to
current inventory.

THE COMPLETE COST-KEEPER.

187

MACHINE SHOP MAINTENANCE. (Material)

Charges.

1 — Inventory first of year.
2 — Unproductive material from
purchase account.

Credits.

Close into department loss anJ
gain account at end of year enougti
to leave a debit balance equal to
current inventory.

BOILER SHOP MAINTENANCE. (Material.)

Charges.

I — Inventor}' first of year.
2 — Unproductive material from
purchase account.

Credits.

Close into department loss and
gain account at end of year enough
tT leave a debit balance equal 'o
current inventory.

SMITHY MAINTENANCE. (Material.)

Charges.

Credits.

I — Inventory first of year.
2 — Unproductive material from
purchase account.

Close into department loss and
gain account at end of year enough
to leave a debit balance equal to
amount of current inventory.

MACHINE SHOP LOSS AND GAIN.

Charges.

I — Department purchases of pro-
ductive material.

2 — Transfer of productive mate-
rial from other departments.

j--Department purchases of pro-
ductive labor.

4 — Transfer of productive labor
from other departments.

5 — Department purchases of un-
productive material.

6— Transfer of u.iproductivc ma-
terial from other departments.

7 — Department purchases of un-
productive labor.

8 — Transfer of unproductive labor
from other departments.

9 — Proportion of general expense.

10— Close at end of year into
profit and loss.

Credits.

I — All sales from each sales ac-
count entered separately.

2 — All productive material fur-
nished to other departments.

3 — All productive labor furnished
to other departments.

4 — All unproductive material fur-
nished to other departments.

5 — All unpro<luctive labor fur-
nished to other departments.

i88

THE COMPLETE COST-KEEPER,

BOILER SHOP LOSS AND GAIN.

Charges.

Credits.

I — Department purchase of pro-

I—All sales from each sales ac-

ductive material.

count entered separately.

^— Transfer of productive mate-

2—All productive material fur-

rial from other departments.

nished to other departments.

3 — Department purchase of pro-

3—All productive labor furnished

ductive labor.

t.) other departments.

4 — Transfer of productive labor

4 — All unproductive material fur-

from other departments.

nished to other departments.

5 — Department purchases of un-

5— All unproductive labor fur-

productive material.

nished to other departments.

6 — Transfer of unproductive ma-

terial from other departments.

7 — Department purchases of un-

prjoductive labor.

8— Transfer of unproductive la

bor from other departments.

9 — Proportion of general expense.

10 — Close at end of year into

profit and loss.

FOUNDRY LOSS AND GAIN.

Charges.

Credits.

I — Purchase of foundry pig.

2 — Purchase of foundry coke.

3 — Purchase of foundry scrap.

4 — Department purchases of pro-
•ductive labor.

5 — Department purchases of un-
productive material.

6 — Transfer of unproductive ma-
terial from other departments.

7 — Department purchase of un-
productive labor.

8 — Transfer of unproductive labor
from other departments.

9 — Proportion of general expense.
10 — Clase at end of year into
profit and loss.

I — All sales from each sales ac-
count entered separately.

2 — All productive material fur-
nished to other departments.

3 — All productive labor furnished
to other departments.

4 — All unproductive material fur-
nished to other departments.

5 — All unproductive labor fur-
nished to other departments.

THE COMPLETE COST-KEEPER.

189

SMITHY LOSS AND GAIN.

Charges.

Credits.

I — Department purchoses of pro-
ductive material.

2 — Transfer of productive -mate-
rial from other departments.

3 — Department purchase of pro-
ductive labor.

4 — Transfer of productive labor
from other departments.

5 — Department purchases of un-
productive material.

6^Transfer of unproductive ma-
terial from other departments.

7 — Department purchases of un-
productive labor.

8 — Transfer of unproductive labor
from other departments.

9 — Proportion of general expense.

10 — Close at end of year into
profit and loss.

I — All sales from each sales ac-
count, entered separately.

2 — All productive material fur-
nished to other departments.

3 — All productive labor furnished
to other departments.

4 — All unproductive material fur-
nished to other departments.

5 — All unproductive labor fur-
nished to other departments.

PROFIT AND LOSS.

Charges.

Credits.

I — Depreciation of tools and ma-
chinery.

2.— Percentage on sales for bad
debts.

3 — Former profit and loss. (If a
credit, put on other side.)

4— Dividends paid.

I — Balance first of year

2 — Credit from machine-shop loss
and gain.

3— Credit from boiler-shop loss
and gain.

4— Credit from foundry loss and
gain.

5— Credit from smithy loss and
gain.

6— Credit from general merchan-
dise. (If a debit, record on other
side.)

7.— Credit from warehouse. (Ifa
debit, record on other side.)

The difference between the balance at the first of the year, and at the
last of the year indicates the net increase or decrease in worth for the
year.

I90 THE COMPLETE COST-KEEPER.

Instead of using the old method and keeping a single mer-
chandise account only, both purchase and sales accounts are kept
with each department. The disadvantage of the single merchan-
dise account to which all goods bought for a department are
charged and all department sales are credited, is that any goods
sold and credited to the merchandise account and afterwards re-
turned, would not appear as a diminution of the sales, but as an
increase in the product, which would be wholly erroneous. In th:
system here shown such returns are ch&rged to the sales account
to which they belong, and at the end of the year the difference
only, representing the net sales in excess of all just charges, is
carried through the department loss and gain account. The same
is true, conversely, of the department purchase accounts.

Labor and material are kept separate, so that at the end of
the year the department loss and gain accounts indicate exactlv
the quantity of each consumed, thus making it possible to divide
the general expense either in the ratio of the productive material
and labor charges of each department added together, or in refer-
ence only to the productive labor cost of each department. The
sum of material and non productive labor costs of each department
is used in this system as the basis for the general expense division,
yet those accountants making the expense division upon produc-
tive labor costs only, may have much to say in favor of their
method. This is a matter which cannot be conclusively considered
here, but must be decided by each factory manager for himself;
by the use of the system here described the division may be made
either way.

In order that the reader, possibly not possessing an expert
knowledge of accounts, may be enabled to readily comprehend the
closing of the various accounts specified, by a process which aggre-
gates their totals ready for transfer to the department loss and
gain accounts, and thence into the general profit and loss account,
an exposition of the various successive steps taken to procure this
cumulative result, giving each step in sequence, is here detailed.

The accounts are referred to by number instead of by name.

In closing the accounts for the year preparatory to taking off
an annual statement, the process is as follows :

Carry a percentage upon the value of tools and machinery
from No. i into No. 76. To provide for bad debts, assume and
compute a percentage upon the gross sales for the year, and credit
this to No. 5 and charge to No. 76. After following the instruc-

THE COMPLETE COST-KEEPER, 191

tions embraced in the former detail of profit and loss account,
carry any balance remaining in same at the end of the year from
No. 6 to No. 76. Carry a sufficient amount from No. 7 to No. 76
to leave in number 7 a debit balance equal to the amount of gen-
eral merchandise inventoried.

Carry 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25. 26, 27.
2S, and 29 into 30. This gives total general expense. Close any
debit balance of 31 into ^2 leaving as a liability in labor payable
wages due, if any, from preceding pay-day. Distribute 42 into 28,
46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59. and 60. Qose
60 into 61. Distribute 61 into 21, 25, 28, 41, 62, 63, 64, 65, 66,
67, 68, 69, 70, and 71. Carry sufficient amount from 41 to 76 to
leave amount of current inventory a debit balance in storeroom
account. Distribute 43 into 46, 47, 48. 49, 50. 51, 52, 53, 54, 55,
56' 57» 5^» ^"d 59- Close debit balance of 45 into 44, leaving as a
liability any commissions owed in commissions-payable account.
Close 33, 34, and 62 into y2. Close 35, 36, and 63 into 73. Close
37» 38, 65, 66, 67, and 68 into 74. Close 39, 40, and 64 into 75.
Transfer 46, 47, 48, 49, 55,* and 69 to 72. Transfer 50, 51, 52, 53.
56, and 70 to y^. Transfer 54, 57, and 71 to 75. Transfer 58 and
59 to 74. Distribute 30 into 72, 73, 74, and 75, according to direc-
tions embraced in expense account. Close 72, 73, 74, and 75 into

76.

The annual statement should show in detail abstracts of the
following accounts, in order that the factory manager may have
an epitome of the business for comparative purposes: —

No. 30, General expense.

No. 42, Freight.

No. 43, Sales.

Management. — Managing Partner, Superintendent, anil
Treasurer.

Executive Force. — Assistant Sui)erintendent. Head of Sales
Department of Buyer. Supervision of all manufacturing. Issu-
ance and control of all orders from time of receipt until shipped.
Direct supervision of the foreman, and all elements and details of
the executive branch, subject to orders of sujxirintcndcnt. Makes
propositions for sale of goods, names selling price, buys goods,
oversees records relating to sales, adjusts commissions, maintains
general knowledge of costs. prcKlucts. and sales prices and carries
on correspondence for the foregoing purposes.

192

THE COMPLETE COST-KEEPER.

No. 44, Commissions payable.

No. 61, Purchase.

No. 71, Machine-shop loss and gain.

No. ^2, Boiler-shop loss and gain.

No. 73, Foundry loss and gain.

No. 74, Smithy loss and gain.

No. 75, Profit and loss.

He should also have the following forms filled out :

STATEMENT OF RATIOS, ETC.

Coke used

Pig iron used

Scrap iron reed

Other productive material used

Productive labor used

Unproductive material used

Unproductive labor used

Per centage of department unpro-
ductive material to productive material
of same department

Percentage of same to productive
labor of same department

Percentage of same to productive
labor and productive material com-
bined, of same department

Percentage of department unproduc-
tive labor to productive material in
same department

Percentage of same to productive
labor of same department

Percentage of same to productive
labor and productive material com-
bined, in same department

Percentage of department unpro-
ductive material and labor combined
to productive material in same depart-
ment ,

Percentage of same to productive
labor of same department

Percentage of same to productive
labor and productive material com-
bined, in same department

Percentage of general expense to
productive material in same depart-
ment

Percentage of general expense to
productive labor in same department. .

Percentage of general expense to

Productive material and labor com-
ined in same department, (etc., etc.,
as deemed desirable.) ,

Smithy.

THE COMPLETE COST-KEEPER.

193

INVENTORY DEC. 31. 1899.

Machine-shop purchase

Machine-shop maintenance.

Boiler-shop purchase

Boiler-shop maintenance. . .

Foundry maintenance

Foundry scrap

Foundry pig

Foundry coke

Smithy purchase

Smithy maintenance

Barn account

J iant maintenance

General merchandise

Warehouse

Total

ACTIVE ASSETS DEC. 31, 1899.

Cash

' 1

Bills receivable, less bills
discounted

Book accounts receivable. .

Less suspense

Bills payable

Book accounts payable

Excess of active aMeti

NET INCREASE IN WORTH FOR YEAR ENDING
DEC. 31, 1S99.

Jan. I, 1899.

Dec. 31. 1^99.

Real estate

Tools and machinery

Patents

Patterns i

Inventory

Excess of active assets

LeM bonds

Worth

Actual gain or loss during
year

••••••

The footings of these two columns are to balance.

194 THE COMPLETE COST-KEEPER.

EARNINGS FOR YEAR ENDING DEC. 31, 1899.

1 Gain.

L088.

Foundry i

Smithy

Machine shop

Boiler shop

% on sales

% on tools and machinery

Variation in general mdse

* Former profit and loss

fDividends

Sundries as follows :

Earnings

• Put former profit and loss in gain column if a debit and in loss column if a credit,
t Put dividends in g^in column.

Foremen of machine shop, boiler shop, foundry, smithy and
pattern shop.

Supply clerk. — Charge of storesroom and stock, keeping re-
cord of purchase prices, entering cost on cost-cards and inside of
orders, supervising card register and transfer books, checking and
distributing invoices on purchase-transfer book.

Accountant. — Keeps general ledger, journal, and voucher
book, also selling side of sales-distribution book, makes invoices
and statements, makes pay-roll and pay-roll checks.

Stenographer. — Does the typewriting, files the letters, and
copies letters. In the latter she is assisted by other clerks at
mailing time. Also one other clerk does a little typewriting occa-
sionally.

Clerk. — Writes cash book, bills-receivable book, freight book,
commission book, and consignment book. Makes vouchers, and
commissions reports.

Clerk. — Assistant superintendent's clerk in order department.

Clerk. — Machine-shop foreman's clerk. Keeps machine-shop
time, makes machine-shop shipping memorandums, cost-cards, and
does general clerical work.

Qerk. — Timekeener for boiler shop.

Qerk. — Boiler-shop foreman's clerk, makes shipping memo-
randums, cost cards, etc.

THE COMPLETE COST-KEEPER. 195

Clerk. — Warehouse clerk ; has charge of details of warehouse,
makes deliveries, keeps track of stock, etc.

Clerk. — Gatekeeper and warehouse clerk. Keeps gate-time
record, does warehouse work, makes shipping bills, and ships ex-
press goods. Reports receipts of express and freight carted in.

Qerk. — Does detail on card-transfer books, card register, pur-
chase-transfer book, and makes blue prints.

Cost-Qerk. — Keeps labor-detail book. Collects and classifies
all labor costs, piece-work prices, etc. Keeps pattern-record book,
and tracing register ; also record of photographic negatives. Makes
information sheets or records of standard data.

Head Draughtsman. — Supervises draughtsmen and makes
estimates for sales department.

Yard Foreman. — Has charge of all loading, unloading, and
handling of cars ; has charge of teamster and locomotive crane.

Yard Carpenter. — Has charge of all alterations and repairs on
buildings, packing heavy goods, staking and wiring cars, etc.

Office Boy. — Copies letters, runs errands, and delivers papers
periodically between departments throughout the day.

THE NATIONAL SWITCH & SIGNAL COMPANY'S
COST-KEEPING SYSTEM.

By Charles Hansel, M. Am. Soc. C. E.

The National Switch and Signal Company was founded in
1888, and was reorganized in 1893 by Mr, Oakley Thorne, Presi-
dent. Mr. Charles Hansel, the writer of this article, was made
Acting Manager in 1893, and became Vice-President and Gen-
eral Manager in June, 1894. At that time there was no
cost-keeping system worthy of the name in operation at the works,
and the need of an efficient system was distinctly seen. The writer
immediately sought such a system, and, finding that it could not
readily be obtained from exterior sources, proceeded to apply him-
self to the production of an original system of cost-finding. This
task proved more extended than was anticipated, and the system
was not ready for use until May, 1895, when it, as now used, was
installed at the factory, no alterations having been made in the
general scheme, (.he only variation being a more minute time sub-
division on the workmen's time cards. The only increase of cleri-
cal force was the addition of the cost-clerk.

In this system three costs are kept : The flat cost, including
labor and material only; the factory expense cost, which is the
flat cost plus the factory expense ; and the total cost, which includes
all expenses of every kind. These costs are gathered by cards and
recorded in books, the books being introduced for differential ex-
positions of the costs, so that comparisons of successive results are
forced upon the attention of the manager. The inventory is made
once a year from actual count and survey. A quarterly inventory
is made from the stores ledger. The results from the last year
show a difference of only i^ per cent, between the inventory made
form the stores ledger and the inventory made from actual count
and survey. A system which specifies all accounts by numbers,
called Key to Distribution of Vouchers, avoids all possibility of
conveying information of actual performances and results to any
one not in possession of this key. In all there are 149 sub-accounts
under 24 general voucher titles kept on the ledger under number
symbols.

This system will appear very complicated and formidable to
those who are not familiar with modern factory accounting sys-

THE COMPLETE COST-KEEPER. iq;

terns, because of the large number of sub-divisions of the expense
account, and because of the multiplicity of printed forms employed.
In point of actual practice, these many expense divisions and
many printed forms are great time-savers in accounting, besides
giving information most useful to the manager, information which
could not be obtained without their employment. A manager mav
desire to reduce his expense account, but he cannot do so by sim-
ply informing his subordinates of this desire. The manager must
be able to tell his subordinates exactly where reductions shall he
made, and exactly what those reductions shall be; the manager
cannot do this until he has divided his expense account into its
ultimate elements ; before he can order a reduction at any one
point, he must know what each detail of his business costs him.

The whole case of expense account division is exactly parallel
to the case of a boy sorting shop scrap into boxes. Suppose the
pile of unassorted scrap contains a hundred diflferent articles ; sup-
pose also, that the boy is supplied with a hundred boxes, each one
tagged with one sample of a constituent element of the scrap pile ;
it is then certain that the boy will sort the scrap accurately and
quickly. But suppose that the boy has only fifty boxes for the
hundred kinds of scrap, each box tagged with a single model, and
that he is instructed that in sorting the scrap the pieces not defi-
nitely assigned are to be placed in the box tagged with the model
most closely approximating the stray — in this latter case the sort-
ing could not be done quickly, nor could it be expected that it
would be done in the best manner.

Again, suppose the foreman wishes to know what the scrap is ;
if there is a box for each sort, then he can find out at once what
there is, but if more than one kind of scrap is placed in the same
box, then the foreman must turn the stuflF out on the floor and
count it up. before he can know about it. This simple example
applies exactly to the expense-account divisions. . If there is a
division for each element of expense, then each expense item is
instantly and correctly placed, and when the manager examines
these expense items he can tell exactly how each one was created.
But if there is any lumping, or association of related items, a
mystery is at once created, and mysteries are of all things most
abhorrent to the clean-cut managerial instinct, which feels that
nothing is so costly as uncertainty, doubt and hesitation.

Many accountants seek to keep the total number of factory

198 • THE COMPLETE COST-KEEPER.

accounts as small as possible ; this is unquestionably an error ; the
boy should have boxes enough for all the sorts of scrap, and the
accountant should have expense divisions enough, so that every-
thing paid out may have a certain fixed place of entry of its own.

A multiplicity of printed forms is also a prime requisite of
cheap and accurate factory accounting.

The cardinal factor of good factory management is duplica-
tion and repetition. All original work is costly, and all original
work is liable to contain errors.

When a correct and satisfactory form for a certain account or
statement has been devised, it is simply reckless extravagance to
leave this form unprinted, and trust to memory and reflection to
recall it w^hen it is again demanded for use. The printed form
saves original labor in again conceiving and writing the document,
and it saves mental labor in another very important direction — the
satisfactory printed form, after it is once devised, insures the clerk
who fills it against errors of omission, and thus relieves him from
a constant source of anxiety, to say nothing of the very great sav-
ing of pen-work effected by the printed blank form.

Hence it appears that instead of increasing the labor and cost
of accounting by the introduction of divided accounts and printed
forms for every place where they possibly can be used, these two
features are really labor-saving elements which greatly reduce the
cost of accounting, besides assuring accurate detailed information.
To leave generalities and come to actual practice, it may be said
that when this system was placed in operation in the shops it was
expected that it would require a very considerable increase of
clerical force, while the actual outcome was a saving of $139.00 in
the first year's clerk hire. It is also absolutely certain that the in-
formation collected and distributed by the shops could neither be
obtained nor sent out without a very great increase of clerical force
if all possible use of printed blank forms were not made.

From the general manager's office in New York City all the
operations of the factory are directed in detail. One part of the
business is the manufacturing of the various parts in the shops
at Easton. Another large portion is the installation of completed
plants wherever they may be ordered to be placed. The production
of such a system of account-keeping as shall enable the manager
in New York to minutely direct all the operations in the factory,
as well as the various installation operations which may be in pro-

THE COMPLETE COST-KEEPER. 199

gress at any point in the United States, requires thought, and it
is a matter of some pride to the originator that this system, evolved
with much labor and put into operation with some misgivings,
proved so fully adequate to meet the requirements for which it
was devised that it has received no substantial alterations since it
was first placed in use.

The high pay-roll of the company carries between three and
four hundred names.

The factory operations include seven well defined departments
— designing, woodworking, machine construction, drop forging,
blacksmithing, founding, and installation.

The clerical force consists of six persons : A head book-keeper,
an assistant book-keeper, a stenographer and typewriter, a ship-
ping and quotation clerk, a storekeeper, and the cost-keeper. The
book-keeper, his assistant, the stenographer, the shipping and quo-
tation clerk, and the stores-room keeper, would be indispensable
even though there were no cost-keeping system whatever employ-
ed. This leaves the cost-clerk as the only charge directly due to
the cost-keeping system. The factory books consist of a combined
day-book journal and a ledger, two books only, the different forms
and cards used in carrying out the cost-keeping system serving for
all other purposes of record. The shipping and quotation clerk
adds to the usual duties of a shipping clerk the making of quota-
tions for factory orders according to price lists furnished him by
the general manager. The storekeeper is provided with a stores-
room book upon which he enters all material received and delivered
by his dpartment. It is the sole duty of the cost-clerk to receive,
examine, and compare the time-cards and to transfer their aggre-
gates to the proper accounts : he has an exclusively private office ;
and is not permitted to be interrupted ; the time cards are kept in
his office in such a manner as to enable him to readily find any
order-card for a considerable period of time after the result shown
by a card has been entered on the cost ledger in his charge.

Words do not have always exactly the same meaning to dif-
ferent individuals, and to avoid all possibility of misapprehension
the following partial glossary is given, defining the sense in whirh
the writer uses some words of importance in this relation.

200 THE COMPLETE COST-KEEPER.

PARTIAL GLOSSARY OF TKRXS.

Advertising. — ^All charges for pamphlets, catalogue, cards in
journals, and exhibits.

Assets. — Property of all kinds.

Balance Sheet. — A complete summary of debit and credit, or
received and disbursed, balances as they appear at a given date.

Commercial Books. — The books pertaining to the office ac-
counting, such as the ledger, journal, and cash book, as distin-
guished from factory books.

Contracts. — Such accounts as require expenditure of labor
and material not included in general factory orders, such as the
installation of work after material has been furnished.

Contract Account Book. — The book in which is registered all
expenses chargeable to each contract. The classification of mate-
rial, labor, freight, and general expenses is made in such manner
as to show the cost of each part of installation. This book also
gives a general description of the scope of the contract, name of
foreman in charge, date commenced and finished, and date pay-
ments are due and made.

Cost of Production. — The total expenditure incurred in the
production of a commodity. This term is distingiiished from
prime cost, in that the latter term does not cover the whole cost
of production.

Cost-Gerk. — The person who keeps all time and compiles the
reports of stores and labor expended on each order.

Depreciation. — The falling off in the value of building, ma-
chinery, plant, and other assets.

Expense, Law. — Expense incurred in legal fees.

Factory Accounting. — The systematic registration of trans-
actions attendant upon manufacture.

Factory Pay-Rolls. — All wages paid employees in factory,
including all v/ages not covered in operating pay-roll or installa-
tion pay-roll.

Fixed Plant. — The machinery' and appliances required for
manufacture, and permanently located in factory.

Floating Plant. — The machinery and tools used for the instal-
lation of work, such as are used by outside foreman.

Fixture Account. — Of the furniture, fittings, heating, appli-
ances, benches, and shelving.

THE COMPLETE COST-KEEPER. joi

Fud Account. — Showing the sunimar>' of all fud used for
any purpose.

General Charges. — The general expenses which cannot be
directly charged to any particular process or branch of the busi-
ness.

Goodwill. — Value of established trade or patronage.

Installation Wages-Record. — The record of all time of men
employed in installing work outside of factor>'.

Jigs and Templets. — Tools which are made for the manufac-
ture of specific parts. These are generally considered non-pro-
ductive if they are used in constantly recurring manufacture; if,
however, the product for which they are designed is special, the
jig or templet is productive and is charged directly into the prime
cost. This must be indicated in time-return for this department.

Job. — The number or name of the article manufactured, as
indicated in the catalogue, or as described in the order upon which
a certain work is undertaken.

Light Account. — All charges for lighting factory or offices.

Rough Stores. — All material, whether finished or unfinished,
purchased for the purpose of manufacture.

Material. — That factor in the cost of production which repre-
sents the rough stores used in the manufacture of any artide.

Material- Issued Book. — A factor>' book in which is registered
the quantity and value of material issued.

Order. — Instructions to supply material or work.

Orders Account-Book. — The book in which all orders received
are registered. The prime cost of each job or artide included in
the order is sho^Ti in a column entitled prime costs. (See prime
costs).

Operating Pay-Record. — The record of all artides paid to
employees not recorded on factory pay-roll or installation pay-
roll.

Patterns. — Will be considered as are jigs and templets.

Prime Cost. — The original or direct cost of an artide as
shown by definite charges of actual value of material and labor
expended, plus a proportionate percentage of total expenditure for
unproductive labor and material disbursed in factory operations.

Stock. — As distinguished from material, those commodities
wlridi, having been manufactured, constitute the artides of trade:
manaufactured or completed parts on hand.

202 THE COMPLETE COST-KEEPER.

Scrap Value. — The minimum value of articles ; i. e., the price
that may be depended upon for waste material.

Scrap. — The residue of materials acquired in the course of
manufacture, the product of sale of which is credited to cost of
production.

Stock Debit. — A factory form used to record the completion
of articles manufactured for stock, and their transfer from the
factory to the stock ledger.

Stores. — Covers both stock and material.

Stores-Received and Disbursed Ledger. — The factory book
showing quantity and value of all stock, and finished stores.

Stores Order. — The instructions to manufacture for stores.

Stores Uncompleted. — A register of articles in course of
manufacture.

Storekeeper. — The officer in charge of all stock, finished
stores, rough stores, tools, scrap, and all loose material; having
general charge of receipt and disbursement of all stores, and of
shipment.

Time-Book. — The book in which time of each employee is
registered, both from the clock record and the individual report
of each employee working on orders.

Tools. — Instruments which are not fixed and which are of Tv
more or less permanent nature.

♦Unproductive Labor. — All labor not directly chargeable to
some specific order.

♦Unproductive Material. — All material disbursed, but not
directly chargeable to any specific order.

Voucher. — Any instrument which is a record of the settle-
ment of any account and is a complete statement of date when
obligation was incurred and date of settlement.

Wages Record-Book. — The book in which the name of each
employee is registered, with date of employment, department,
class, rate of wages, when employed, when dismissed.

GENERAL SCHEME.

All orders and requisitions for finished stores, rough stores, or
labor emanate from the office of the superintendent. All sales-
orders are made on the storekeeper, who enters same in the orders

*In all cases where labor and material are not charpfed in the prime
cost of any order, the time and material used are reported as unpro-
ductive.

THE COMPLETE COST-KEEPER, 203

account-book, as specified by the superintendent's order, it being
intended that an account be kept with each order, whether for
stores, contract, or regular sale.

The storekeeper must report back to the superintendent if his
stores are short in any of the articles mentioned in said order,
making regular requisition on superintendent for the required
stores. It is intended that the stores be kept up in such quantities
as to enable the storekeeper to fill all orders from stock in the •
storeroom.

The storekeeper makes daily requisitions on the superinten-
dent, based on the general condition of stores. All such requisi-
tions must be approved by the general manager, after which they
may issue from superintendent's office as regular stores orders.
Orders to manufacture are issued by the superintendent against
the head foreman of the proper department, and the foreman
makes requisition on storekeeper for all material necessary to com-
plete the order, giving number of order, etc., filling out the regu-
lar form for that purpose.

The stores-received ledger is the storekeeper's record of stores
on hand ; each invoice is recorded with date of receipt, quantity,
from whom purchased, price, and such other information as is
provided for in the ledger form. Two books are used, one to re-
cord finished stores, and one for rough stores received.

Tally-sheets are furnished the keeper of the stores-received
ledger, showing the quantity, description, weight, and disposition
of all stores received into the works, and this tally-sheet is then
checked with the bill or invoice before the same is spread upon
the records, any diflFerence in quantity or weight being noted on
invoice, and sent to the accounting department for adjustment
between the shipper and the factory.

The stores-disbursed ledger shows all stores and material dis-
bursed to each order, together with the value thereof. Since
values are constantly changing, all stores are charged to each order
at price last paid, unless the market price is known to be higher,
and at the last prime cost made on any finished stores issued, as
per stores-received ledger.

Tn case the material or stores issued to any order is not en-
tirely consumed on that order, it is returned to stores by credit
memorandum.

After the order is charged with the stores received the amount

204 THE COMPLETE COST-KEEPER.

of labor expended on it is noted and placed ni a separate column
in the orders or contract account-book, so as to be identified at
any time.

The manner of procuring the exact amount of time and
wages chargeable to each order is as follows: Each man is fur-
nished with a time-card upon which is printed the hours and 5
minutes, which also bears the job and order number, and he is
required to punch the hour and minutes when he commenced and
finished that job and order. A visit is made at stated periods each
day by the timekeeper, who collects the completed order-cards and
enters them in a comparative time-book. Each man upon entering
the service of the company is given a number, classification, and
rate of wages, and is required upon entering and leaving the fac-
tory to register the time of his arrival and departure by plunging
on the clock at his proper number. This automatically registers
the time, and the clock-records showing all the time registered
for the entire works are collected each day and entered on the
comparative time-book. Having now the record of time from two
sources, the clock and the individual record as shown by punching
the time-cards, the timekeeper is enabled to distribute the labor
to its proper orders, and also determine in each department all the
labor that is non-productive, all labor being rated as non-produc-
tive which is not charged to any specific order. The timekeeper
liaving made this distribution of time to the several orders, fur-
Tiishes this distribution to the cost-clerk, who enters it in the pro-
-per column against the order. This gives the prime costs of all
stores, material, and labor directly chargeable to any order; there
hemains, however, a certain charge for non-productive labor and
material.

The difiference between the total pay-roll of the factory and
-the sum of the distribution of that roll among the several orders
as before described and as furnished to the cost-clerk, is the total
amount of unproductive labor, and each order is debited with the
same proportion of expense that the amount of unproductive labor
bears to the pay-roll total. Since the prime cost is exactly defined,
what is covered in its determination is readily understood.
• The value of all stores issued for a production-order, all labor
directly employed in its completion, and the proper percentage of
all unproductive labor and material which is chargeable to it, de-
termines what is here called the prime cost of that order.

THE COMPLETE COST-KEEPER. 205

As before stated, should there be any material left over after
the order is completed, this material is returned to the stores with
a credit memorandum on the order.

Since the product of the drop forging and foundry depart-
ments may be finished so far as the work of those departments is
concerned, and yet not rate as finished stores, it is necessary to
keep a record of finished and unfinished stores; this is provided
for by having two stores-received ledgers.

While it is not practicable to follow the exact labor on each
particular piece of casting, it is possible to determine the average
cost per month or any stated periods of producing castings of
different weights. And having done this, all castings received
from the foundry are debited to stores received and credited to
foundry account at a certain fixed rate, to be determined by the
general manager, his data being the monthly report of the cost
per pound of each of the several weights of castings. The manner
of determining the cost of castings is as follows :

The cost per pound of the mixture in the cupola ; the cost per
pound for fuel and power, unproductive labor, and material ; the
cost per pound for waste between the cupola and the finished cast-
ings ; the cost per pound for moulding each specific article, which
is easily determined, either from time-rate or price per piece.

All stores and labor for each department are charged to that
department, all sales shown in the trading account of the com-
mercial ledger are credited so that the total trading account plus
the difference in value of stores in that department, less the prime
cost, should show a profit or loss equal to the book account.

The orders account-book is provided with a column for en-
tering the selling price, so that the difference between totals in
the column of prime costs and the totals in the selling price column
indicate the total gross profit on the order, and it is from this
book that all billing is made.

Following is a list of job numbers to which material for
which no regular order is issued is to be charged. The object of
this list is to avoid the necessity for issuing an order signed by
the superintendent, and for the further purpose of assisting the
completion of such an order, when one is issued, as by this means
a specific order number always relates to the same thing; conse-
quently, the office becomes familiar with it. and the number ex-
plains the order without further examination.

2o6 THE COMPLETE COST-KEEPER.

Example: On receipt of stores, the foreman issues order "6i'^
for unloading- and handling stores, and each person engaged is
furnished with a time-card marked with this order number. No
order is issued under this schedule for labor which will require
less than thirty minutes in performance. This list is at present
sub-divided under eighty-four headings, which makes it possible
to analyze the labor-expense account, and the pay-roll, with refer-
ence to those items of expense which are made without issuing
order-cards.

List of job numbers to which material and labor for vhich
tio regular order is issued are to be charged.
Order No.

1 Eng-ineer's time.

2 Material for engines.

3 Watchman's time.

4 Sweeping aiid cleaning machine department.

5 Sweeping and cleaning electrical department.

6 Sweeping and cleaning foundry.

7 Sweeping and cleaning woodworking.

8 Sweeping and cleaning blacksmith.

9 Oiling shafting, machine department.

10 Oiling shafting, electrical.

11 Oiling shafting, foundry.

12 Oiling shafting, woodworking.

13 Oiling shafting, blacksmith.

14 Unloading coal for blacksmith.

15 Unloading coal for boiler.

16 Unloading coal, sand, pig iron, coke, etc., foundry.

17 Material for placing new machines ready for operation-
'^Give name of machine).

18 Labor for placing new machines ready for operation.

19 Material for making and repairing shop tools, machine
-department.

20 Labor for making and repairing shop tools, machine
department.

21 Material for making and repairing shop tools, electrical
department,

22 Labor for making and repairing shop tools, electrical
department.

THE COMPLETE COST-KEEPER. 207

27) Material for making and repairing shop tools, foundry
department.

24 Labor for making and repairing shop tools, foundry
department.

25 Material for making and repairing shop tools, wood-
working department.

26 Labor for making and repairing shop tools, woodwork-
ing department.

2j Material for making and repairing shop tools, blacksmith
department.

28 Labor for making and repairing shop tools, blacksmith
department.

29 Material for making repairs to grounds, drain fences,
tracks, walks, etc.

30 Labor for making repairs to grounds, drain fences,
tracks, walks, etc.

31 Material for repairs and renewals of machinery, machine
department.

32 Labor for repairs and renewals of machinery, machine
department.

2i^ Material for repairs and renewals of machinery, electrical
department.

34 Labor for repairs and renewals of machinery, electrical
department.

35 Material for repairs and renewals of machinery, foundry
department.

36 Labor for repairs and renewals of machinery, foundry
deparmient.

37 Material for repairs and renewals of machinery, wood-
working department.

38 Labor for repairs and renewals of machinery, wood-
working department.

39 Material for repairs and renewals of machinery, black-
smith department.

40 Labor for repairs and renewals of machinery, black-
smith department.

41 Material for repairing patterns.

42 Labor for repairing patterns.
42 Material for repairing flasks.

2o8 THE COMPLETE COST-KEEPER.

44 Labor for repairing flasks.

45 Material for repairing floating equipment.

46 Labor for repairing floating equipment.

47 Material to put on order stores returned from contracts.

48 Labor to put on order stores returned from contracts.

49 Material for boxing stores other than contracts.

50 Labor for boxing stores other than contracts.

NOTE : — ALL material and labor for boxing stores for
contracts must be charged against contract No.

51 Material for repairing office furniture.

52 Labor for repairing office furniture.

53 Material for repairing jigs, templets, machine depart-
ment. (All new formers, jigs, templets, to be made only on order
from superintendent.)

54 Labor for repairing jigs, templets, machine department.

55 Material for repairing jigs, templets, electrical depart-
ment.

56 Labor for repairing jigs, templets, electrical department.

57 Material for repairing jigs, templets, woodworking de-
partment.

58 Labor for repairing jigs, templets, woodworking de-
partment.

59 Material for repairing jigs, templets, blacksmith depart-
ment.

60 Labor for repairing jigs, templets, blacksmith depart-
ment.

61 Unloading and handling stores.

62 Labor handling Bushnell work. (Delivering to them.)

63 Material repairs to building No. i.

64 Labor repairs to building No. i.

65 Material repairs to building No. 2.

66 Labor repairs to building No. 2.

67 Material repairs to building No. 3.

68 Labor repairs to building N0.3.

69 Material repairs to building No. 4.

70 Labor repairs to building No. 4.

71 Material for repairing fixtures, machine department.

72 Labor for repairing fixtures, machine department.

73 Material for repairing fixtures, electrical department.

74 Labor for repairing fixtures, electrical department.

THE COMPLETE COST-KEEPER.

209

75 Material for repairing fixtures, foundry.

76 Labor for repairing fixtures, foundry.

77 Material for repairing fixtures, woodworking department

78 Labor for repairing fixtures, woodworking department.

79 Material for repairing fixtures, blacksmith.

80 Labor for repairing fixtures, blacksmith.

81 Core maker, foundry.

82 Cupola tender, foundry.

83 Labor of all other kinds in foundry, such as grinding,
cleaning tumblers, etc.

84 General helper in machine shop, for which no regular
charge can be kept.

No order will be issued for any labor that will require less
than thirty minutes in performance.

To show the form in which accounts made under this list of
unproductive labor, for which charges no order is issued, are col-
lected and disposed of. the following statement of non-productive
labor for the two weeks ending November 6, 1898, is given, the
significant figures of the original being replaced by ciphers in this
transcript.

DISTRIBUTION OF SHOP PAY-ROLL FOR THE TWO
WEEKS ENDING NOVEMBER 6th, 1898.

Department.

No. of
Men.

No. of
Hours.

Av.per
Hour.

Amount
Produc-
tive.

Amount
Non.Prx>-
ductive.

Totrnt

Pwct
N. P.

Machine Shop.

Electrical

Shipping

Wood Shop. . . .

Foundry

Blacksmith

.00
.0000

000.00

00.00

0.00

000.00

00.00

000.00
00.00
00.00
00.00

00.00

000.00
000.00

00.00
000.00
000.00

00.00

000
0000
0000

000

00
00
00

00
00

0000

.00

0000.00

000.00 0000.00

PERCENTAGES.

Productive 000

Non-productive.. .000

.000

Check No. 9509
Voucher No. 1406

2IO THE COMPLETE COST^KEEPER.

Statement of Non-Productive Labor for the Two Weeks
Ending November 6th, 1898.

Engineer's time 00.00

Watchman's time 00.00

Sweeping and cleaning, machine department .00

Sweeping and cleaning, electrical department •. .00

Sweeping and cleaning, woodworking department .00

Oiling shafting, machine department 0.00

Oiling shafting, woodworking department 0.00

Unloading coal, sand, pig iron, coke, etc., foundry 0.00

Labor, making and repairing shop tools, machine dep't . . 00.00

Labor, making and repairing shop tools, electrical dep't. . 00.00

Labor, etc., foundry 0.00

Labor, making and repairing shop tools, woodworking

department 00.00

Labor, making and repairing shop tools, blacksmith dep't. .00

Labor, making repairs tg grounds, drains, etc 0.00

Labor for repairs and renewals of machinery, machine

department 0.00

Labor for repairs and renewals of machinery, electrical

department .00

Labor for repairs and renewals of machinery, woodwork-
ing department .00

Labor for repairing floating equipment .00

Labor, boxing stores other than contracts 0.00

Labor, repairing office furniture .00

Labor, repairing and making jigs, templets, etc., electrical

department .00

Labor, repairing and making jigs, templets, etc., wood-
working department 0.00

Unloading and handling stores 00.00

Labor, delivering Bushnell work .00

Labor for repairing fixtures, machine department 0.00

Labor for repairing fixtures, foundry department 0.00

Labor for repairing fixtures, woodworking department. . 0.00

General helper in machine shop, no charge being made. . 0.00

Tool-room clerk 0.00

Labor, painting stores 0.00

Miscellaneous 0.00

THE COMPLETE COST-KEEPER. 211

L. Smith, machine department 00.00

M. O. Scheckler, woodworking department cxD.oo

J. Leahy, shipping department 00.00

H. Koch, stock clerk 00.00

Changing special locking dogs 00.00

000.00

Less 13 per cent, of watchman's and engineer's time

charged to foundry productive 0.00

$000.00
List of Forms and Books Used in the Business.

Form No. Description.

1 Superintendent's requisition to purchase, large and
small.

2 Superintendent's requisition on storekeeper, large and
small.

3 Stores memorandum, large and small.

4 Superintendent's requisition on factoiy, large and
small.

5 Prime-cost record.

6 Time-cards, white, blue, green, yellow, and manila.

7 Wages record.

8 Factory time-sheet, two weeks.

9 Piece-work time-book sheet.

10 Piece-work rate-book sheet.

11 Department requisition on stores, white, blue, green,
yellow, and manila.

12 Department credit memorandum to stores, white, blue,
green, yellow, and manila.

13 Stores ledger, finished stores.

14 Stores ledger, unfinished stores.

15 Stores-received record, large and small.

16 Stores rejected.

17 Stores returned.

18 Daily cupola report.

19 Fuel record.

20 Cost of handline.
2T Building record.

212 THE COMPLETE COST-KEEPER,

22 Record of machinery.
23-A Shipping Hst, large.
23-B Shipping list, small.

24 Pattern record.

25 Jigs, dies, and special tools.

26 Vouchers, small.

27 Vouchers, large and small, blue and yellow for pay-
rolls.

28 Piece-work, pay-roll voucher, factory.

29 Voucher register-sheet.

30 Voucher address-slips.

31 *Credit memorandums.

32 Large shipping cards for tacking on cars.
ZZ —

34 *Card, contract account book charges.

35 *Card for keeping account of catalogues, etc., sent out.

36 * Reference card.

2i7 '^''Contract account card.

38 ""Principal and petty cash card, weekly.

39 Treasurer's statement card, weekly.

40 *Tenders submitted and contracts received card.

41 *Distribution-of-cash card, monthly.

42 ^Treasurer's daily report card.

43 *Order-received card.

44 * Treasurer's statement card, monthly.

45 *Machines shipped card.

46 *Card for keeping account of stock, Chicago store-
house.

47 *Billing card.

48 Tool lists.

49 Superintendent's regular and piece-work time-card.

51 *Jigs, dies, and special tools record-sheet.

52 * Pages for pattern book.

53 * Sheet used for price lists and weight lists.
(Unappropriated numbers follow in sequence to)

100 Order blanks.

101

* These have no form numbers.

THE COMPLETE COST-KEEPER, 213

102

Contract specifications.

103

Acceptance blanks.

(Unappropriated numbers to)

108

Foreman's letter-head.

109

Foreman's envelopes.

Seven days' notice blanks.

III

Receipt blanks.

112-

A Bill-heads, "original,"

large and small.

112-

B Bill-heads, ''duplicates

," large and small.

112-

C Bill-heads, "triplicate,"

large and small.

113-

E Letter, wholes.

114-

E Letter-heads, halves.

115
116

117

Order acknowledgement

cards.

118

119 Statement blanks.

1 20- A Envelopes, official size.

120 Envelopes, official size, with Chicago address.
12 1 -A Envelopes, large.

121 — Envelopes, large, with Chicago address.

122 Expense account-sheets.

123 Estimating sheets.
124-E Envelopes, small, white.

(Unappropriated numbers to)
130-A Foreman's time-sheets.
. 130-B Foreman's time-sheets, extra work only.
(Unappropriated numbers to)

137 Extra large envelopes.

138 Construction memorandum.

139 Proposal memorandum.

140

14T Foundry time-sheets, large and small.

142

T43 Time-register regulations card.
T44 Reference catalogue envelopes.

The various printed forms used in connection with this system
of cost-keeping arc as follows :

No T . Requisition to Purchase. Form numbered one is issued

214

THE COMPLETE COST-KEEPER.

Form i.

REQUISITION TO PURCHASE.

Date P. A. Order No

To Purchasing Agent : Date ordered

You are hereby requested to purchase the following described arti-
cles, to be delivered to

Ship via

Quantity.

Description.

Remarks.

Approved :

General Manager.

Superintendent.

Form No. i. Requisition to Purchase. Two sizes, 8}^ inches wide by
5 inches, and lo inches up and down.

THE COMPLETE COST-KEEPER.

215

Form 2.

SUPERINTENDENT'S ORDER ON STOREKEEPER.

Order No.

Date.

Contract No.

Quantity. Catalog No.

Description.

Remar'. •

DIRECTIONS.

Date wanted.
Ship to
At
Ship via

Superintendent.

RETURN MEMORANDUM.

Date Shipped.

Initial
Car.

No
Car.

Month.

Day.

Remark*.

Storeii

eeper.

Form No. 2. Superintendent's Order on Storekeeper. Two siics. 7 inches
wide by 6 inches, and la inches up and down.

2l6

THE COMPLETE COST-KEEPER.

Form 3.

STORES MEMORANDUM.
Date

On Hand.

Required.

Description.

Remarks.

... ....

Form No. 3. Stores Memorandum. Two sizes, 7 inches wide by 5
inches, and 10 inches up and down.

THE COMPLETE COST-KEEPER.

217

from the general manager's office to the purchasing agent. It
may or not originate in the general manager's office, but all orders
to purchase must be approved by the general manager, unless
stores are required during his absence, in which case purchase

Form 4.

SUPERINTENDENT'S REQUISITION

Requisition No

For Sales Order No . .

ON FACTORY.

Date

Quantity.

Catalog No.

Plan No.

When Required

Remarks.

Month.

Day.

...

••

The nhnv#» rp>niii«;ttinn i«i mmr»l#»fAH

You are 1
furnish the al
and report v
for delivery.

lercby instructed to
)Ove described stores,
I'hen same are ready

bupenntendent.

and r<
Dated

;ady fo

r delivery.

foreman.

Form 4, Superintendents Requisition on Factory, or Production Order.
Two sizes, 6 incUes wide by 6 inches, and 12 inches up and down.

may be made over superintendent's approval. When purcbasinjj
agent has placed his order, he returns the requisition to the super-
intendent's office for file and check against invoice.

No. 2, Superintendent's Order on Storekeeper. Form num-
bered two is used by superintendent in ordering stores to fill all
sales orders, and represents all stores sold, whether in the usual
course of tr:wli« nr fiti ^pccial ccMitrnrt uhrr<* work lias to be in-

2l8

THE COMPLETE COST-KEEPER.

5^ I I

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sBeiSAv

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lB»OJ.

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Jaq»0

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stalled. Since it is desirable to sep-
arate orders from contract work, the
class of order is designated by su-
perintendent, and all charges against
it are classified by storekeeper in
his returns to cost-clerk.

No. 3, Stores Memorandum.
Form numbered three is used by
the storekeeper in notifying the
superintendent of the condition of
stores, the remarks column being
used to indicate the specific des-
cription of stores required. Since
the storekeeper is expected to keep
up his quantities as nearly as may
be indicated by the average orders
received, it is not expected that his
memorandum w^ill be a requisition,
but rather information to the super-
intendent as to the condition of
stores, so that he may make neces-
sary orders on purchasing agent to
meet general requirements.

No. 4, Superintendent's Requi-
sition on Factory. Form numbered
four is the superintendent's requisi-
tion on factory to manufacture
stores. This blank is used to order
a definite quantity to fill a certain
sales-order or for general stores.
If used for sales-order the number
of the superintendent's order on
storekeeper ( form numbered two )
will be entered on blank after the

words 'Sales Order No. .''

Returned finally to cost-clerk.

No. 5, Prime-Cost Record. Form
numbefed five is a book form to

THE COMPLETE COST-KEEPER,

2ig

Form 6.
Workman No.

TIME CARD.

Date.

Date commanced

Order No.

Catalog No....
Number pieces.
Operation No..

Date finished,

Ifin.

5iio

15 2025I30

15 202513^

15 2025J30

15.^0^ 3^

152025
i5;20 25

5jio:i5J2

5 1015

■hi-

;ioi!

5lioii5 20

•I-
30[35j4o

2^130

25 30

25 3''

3 5 '40 45

35^045

5055

3540

13540

35 4-
13540

4045

35 4'>b5

5055
5055
5055

5055
5055

5055
5o!55

5055
50I55

— t —
5o'55

5055

Approved,

Foreman.

Form No. 6. Workman's Time Card. Sire. 4J< inches wide by 4H inches high. Workmen
use a mechanical time-recorder requirin}^ the vibration of a lever on entering and IeaviD|^
the shop. In addition to this record, each workman perforates the five-minute time«€ard
for each job on which he is employed, simply piercing the cani nl the five-minute poinia
most nearly representing his times of beginning and ending work on the job iu hand, the
appropriate order number being entered on the card by the foreman. Whrn the work-
man enters the shop in thr morning, he is furnished with one time-card, which he haoga
on the upper hook ut his individual time-board, after perforating it at his beginoinc
time. If the foreman gives the workman a second job before the first is completed, he
fills in the order number on a second card, and hangs this second card on the upper
hook. Thus the workman may have any number of jobs before him, each order bela|f
given on a aeparate card. When any job is completed, Its card ts transferred to the
lower hook. The time-cards on the lower hook are removed by the timekeeper each
morning, cards on the upper houk being left undisturbed.

This time-card was first used with ftfteen-minute divislooa. but is now chan({ed to fifo^mlnet*
divisions. After the cards are collected, the individual totals are oompared with the
clock record, made tn agree therewith. ;u}d GlcU after chargiilg tbe tiUM to proptrordflnb
Time is paid on the clock record only.

220

THE COMPLETE COST-KEEPER.

X
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o

. :

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THE COMPLETE COST-KEEPER.

221

'. 1

•

t
1

r
S.

E
c5

1 9. PIECE-WORK TIME-B

For Two Weeks End

ls|

e
S5

•

•r*

L-

«^

«£

1 «-

!^=

(x]

•1

1— <

■

' • I

1 '

• • •

fib

: •:

222

THE COMPLETE COST-KEEPER.

FoKM 11. DEPARTMENT REQUISITION ON STORES.
The following Stores are required on account of Superintent's Order

No-

Job No Date

QuauUty.

1
Description. | Weight.

Remarks.

Received, ' By order of

Foreman. Foreman.

Form II. Department Requisition on Stores.
Size 6 inches X 6 inches.

Different Colors.

record the prime costs on each article of manufacture. It is
a summary of the total prime cost of a specific article, and is
valuable as a reference book of prime costs. It is from this book
that the storekeeper will enter prime costs in orders account-book
for such stores as arc on hand from which" any sales-order is filled.
Each article of manufacture will be given a catalogue number or
name, and will be assigned a page or part of page in prime-cost
record- book, so that at any time the last prime cost of any article
may be at once found.

No. 6, Workman's Time-Card. This card is supplied to each
workman, and he is required to account for his full time and make
distribution of same. In case he has worked on several orders

THE COMPLETE COST-KEEPER.

223

Form 12.

DEPARTMENT CREDIT MEMORANDUM TO STORES.

Credit Order No Job No with following

Stores delivered

Quantity.

Description.

Weight

Condition.

Remarks.

Above described stores received.

To Sto

Pleaj

above <

rekeeper :

;c acknowledge receipt of

described stores.

Storekeeper.

Foreman.

Form No. 12. Department Credit Memorandum to Stores. Sire, 6 inches
by 6 inches. Different colors.

during one day, he must use a separate card for each order, and
in case any time is shown which is not charged to an order, it is
recorded as unproductive labor. The rcord of time on the card is
made by punching a small hole with a sharp-pointed instrument
in the square representing the hours and minutes. The timekeeper
collects these cards each morning, and, after comparison with the
clock record, he enters the result on form 8.

No. 7, Wages Record Book. This hook, form number seven,
is used to register the names and rates of pay of all workmen,
and is the cost-clerk's authority for value of labor in making prime
costs.

224

THE COMPLETE COST-KEEPER.

■^

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•T-!

Sz:

i E

; 1

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lance
Shop.

XT.

bfl

8-g

-1

»«

^-»

.£•

C/3

Q-

'.'.'.'.'.'.'.:'.'.'.'.'.

-c

'.'.'.'.'.'.'.'.'.'.'.'.'.

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............

. .

;;•;;;;;;;;;•

i-i

'.'.'.'.'.'.'.'.'.'.'.'.'.

(i< •

THE COMPLETE COST-KEEPER.

22$

:
0 :

Wt.

6
6

1 V

5 ^

Balance

Unfinished

Stock.

Finishea

and
Delivered
To Stock.

1
1

I'l

* • <

I I

•a

226

THE COMPLETE COST-KEEPER.

Form 15. STORES RECEIVED RECORD.

Date

The following articles have been received in good order and
deposited in Bin No

Car Initial.

Car No.

Description.

Received and renorted b

Form No. 15 . Stores Received Record. Two sizes, 6 ins. wide X 6
and 12 ins. long.

Form 16. STORES REJECTED REPORT.

Date

To Storekeeper :

The following articles have been received in BAD order and re-
jected. Please give instructions for disposition.

Car Initial.

Car Number.

Deacription.

Rejected

I by

Form No. 16. Stores Rejected Report. Size, 6 inches square.

THE COMPLETE COST-KEEPER,

227

No. 8, Time-Sheet. This form, eight, is used to register the
time of all work performed by each workman. The clock record
is made by each workman plunging his proper number upon en-
tering and leaving factory. Each department has a series of num-
bers so that time can be grouped in numerical sequence. Any dif-
ference between the daily clock record and the workman's time-
card record is adjusted each day. Each workman is given a page
or part of page, so that his time may be distributed to the several
orders, making a constant reference for information of cost-clerk.

No. 9, Piece-Work Pay-Roll. This form is used for register-
ing amount due each workman for piece-work. The time of eacii
workman, whether on piece-work or not, is reported as heretofore

Form 17. STORES RETURNED MEMORANDUM.

Date Shipped

Date Returned

Shipped

on Description.
Order No.

Prime Cost

and
Handling.

Return
Value.

LOM.

Month

Dav.

Month.

Day.

Form No. 17. Stores-Returned Memorandum. Size, ^% inches wide

by 6 inches high.

described in form eight, and this time is transferred from form
eight to form nine to show comparative value of workman's time
at a given rate per hour as compared with given rate per piece.
This form may be used in any department.

No. 10, Piece-Work Rate-Book. This form is used by the
cost-clerk and time-clerk as authority for charging value of all
piece-work labor. The rate of each article is fixed and authorized
by superintendent or general manager.

No. II, Department Requisition. This form is used between
departments and the storekeepers, and since all orders to manufac-
ture originate in the superintendent's office, his order number must
follow all requisitions and be registered thereon. The disbursing
clerk enters in the disbursine ledger the order and job number
shown on department requisition, thus indicating to what order

228

THE COMPLETE COST-KEEPER.

Form i8. DAILY CUPOLA RECORD.
Date

Materials.

Lbs.

Price.

Total.

N^iECfara No. i

Niagara, No. 2

Shenandoah

Silicon.

Alabama

C.C.Hinkle (Charcoal)

General Scrap

Gate Scrap

Coal '

Coke .

Wood

Form No. 18. Daily Cupola Record. Size 5 ins wide X 8 ins. high.

Stores are distributed. The department makes manifold copies
of each requisition, thus avoiding use of stub memorandums. The
original is delivered to cost-clerk with prime cost of all stores
issued indicated. This, then, is his authority for charging order
with value of stores used in filling it.

No. 12, Department Credit Memorandum. This form is used
by the department in returning any material issued which has not
been used on the order to which it is charged on disbursing side of

the; complete cost-keeper.

229

Form 19. FUEL RECORD.

Name of Department using

m
X

i
I

.....
a

u
5

■

•d

store ledger. This credit memo-
randum is receipted by the stores
department only after the articles
have been received in accordance
with credit memorandum. Stores-
reeeived side of stores-ledger is
then debited and stores-disbursed
side credited. The original is then
delivered to cost-clerk, to credit
order previously charged with stores
issued.

Nos. 13 and 14, Stores-Ledger.
This form is a regular stores-ledger
in which are recorded all receipts
and disbursements of material and
stock, whether such transfers are
made on sales orders or department
requisition. The stores-received
represents all material or stock re-
ceivedi whether from without the
works by purchase or from the
works by manufacture. If from
the first source, the invoice is re-
corded, after prices have been ap-
proved by purchasing agent. If
the stock or material is furnished
from the works it is charged in at
the prime-cost value, the data for
such entries being taken from the
prime-cost record. This ledger will
then show at all times the quantity
of stock and material. Each article
of manufacture will be given a
page, and two books will be kept,
one for finished and one for unfin-
ished stores.

No. 15, Stores-Received Rec-
ord. This form, fifteen, is used

230

THE COMPLETE COST-KEEPER.

Form 20. COST OF HANDLING

Department Date. . 190. .

Cmr

loitiaL

Car

Number.

Date Received.

No. of
Man.

ToUl
Hours.

Rate per

1 our.

ToUl Charge.

Month.

Day.

■— '-^.

'^-

. .".TT. . <

.TTT'.'. .

—

tv^ •

—

1 1

This blank must be filled out and fastened to invoices for car load
lots or less if ordered, and signed by person in charge of unloading.

Form No. ao. Cost of Handling. Sire, sj^ inches wide x 6 inches high. After being filled

this form goes to the co8t>clerk if on specific order; to the purchasing

agent if the order is for merchandise for stores.

as a tally-sheet by stores-clerk in receiving. All articles are care-
fully noted and recorded on this tally-sheet, which is the stores
entry clerk's authority for checking with invoice and entering in
stores-ledger.

No. 16, Stores Rejected. This form is used by receiving clerk
to register any articles received in bad order or which for any
reason are rejected. This is attached to form No. 15, and both are
attached to invoice and returned to purchasing agent for his infor-
mation.

No. 17, Stores Returned. This form, seventeen, is used in
recording any stores returned from customers, which for any rea-
son are rejected. Such returned stores are registered on this form

THE COMPLETE COST-KEEPER.

231

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and debited to stores-received at
return value. The original sales-
order is credited by same amount
and bill clerk authorized to render
corrected bill.

No. 18, Daily Cupola Record.
This form is used in reporting to
the superintendent quantities used
in cupola. The return shown on
this tally-sheet is numbered on
monthly report-sheet and from this
record the gross cupola-cost of all
castings is established. This gross
cost plus all other charges by pay-
roll and foundry supplies gives the
total productive cost of monthly
output. The foundry account is
debited with this charge and cred-
ited with all castings received by
stores, at a fixed rate per pound
which may be established month by
month.

No. 19, Fuel Record. This
form, nineteen, is used to record all
fuel received, showing cost deliv-
ered in works. This is a general
operating expense, except where
same is charged directly to black-
smithing, drop forging and foundry.
The distribution of fuel is made so
far as practicable, leaving little
outside of power and heating to
general operating expenses.

No. 20, Handling Record. This
form, twenty, is used to show direct
charges arising from handling ma-
terial, such as fuel, lumber, signal
poles, and car-load lots. All other
labor consumed in handling goods.

232 THE COMPLETE COST-KEEPER.

Form 23. SHIPPING LIST.

Stores Shipped by the National Switch & Signal Co.
Easton, Pa.,

190..

Car No Via

Car Initial To

Order No

R. R. Order No

For Plant at Checked with R. R. Order

Descrip.

tion of

PackaRc.

Quantity.

Catalog
No.

Articles.

1 1

i 1

Form No. 23. Shipping List. Size 8)^ ins. wide X 6 ins. and
7 ins. up and down.

either in receiving or disbursing, is noted as unproductive, and
all labor noted in form No. 20 is charged to invoice or order as
the case may be.

No. 21, Building Record. This form, twenty-one, is used to
register the size, description, and value of all buildings included
in the works. The original cost is noted and all repairs, renewals:
and additions are recorded. The depreciation charges are marked
off at stated periods so that a balance cast from this record shows
total value of all buildings. This building record, form 21, is a
sheet with typewritten headings, there not being enough matter to
call for a book or printed form.

No. 22, Machinery Record. This form is used to record the
history of each machine. It is not intended to keep an account
wit each machine showing expenditures for repairs and renewals,
as this charge is at present included in unproductive labor, or ma-

r//£ COMPLETE COST^KEEPER

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234

THE COMPLETE COST-KEEPER.

Form 26. Easton, Pa.

The National Switch & Signal Co.

190 Address

190.

Dr.

Kev,

Approved for payment.

Vice.Pres't and Gen'l Manager.

I certify that I have examined
all extensions, prices and calcula-
tions, and find them correct, and
have entered the account on the
books of the Company, and the
safne has not been previously paid.

Treasurer and Purchasing Agt.

Received 190 .

from The National Switch & Signal Co.,
Dollar

in full for above account. 100

(Sign here.)

Note.— The above receipt must be dated and signed by the party in
whose favor this voucher is made, and returned to the Treasurer, The
National Switch & Signal Co., Easton, Pa.

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Form No. 26. Voucher or Bill. Size, 9 inches wide by 8 inches up ard
down. Different colors. Printed on back as shown.

YHE COMPLETE COST-KEEPER. 235

terial, or else assigfned directly to machine-rate per hour in prime
cost record.

No. 23, Shipping List. This form is used by the shipping
department to record all articles shipped on each order of the.
superintendent. This shipping list is compared with original-
order, if from railroad company or other customer, as well as with
superintendent's order, and the name of the individual checking
is noted on form. The list is then delivered to superintendent's
office.

No. 24, Pattern Record. This form is used to record the
prime cost of all patterns and tools made. The right-hand column
shows whether the prime cost has been charged out against any
specific order. If not, it is charged as unproductive and is itemized
in the schedule of unproductive work which forms the basis of a
percentage charge. This form is also a reference book and com-
plete record of patterns and tools made, and materially assists in
making original estimates.

No. 25, Jigs, Dies, and Special Tools. This form is simibr
to form No. 24, and the same general description is applicable.

No. 26, Voucher. This form is used to record all disburse-
ments of cash except for factory and piece-work pay-rolls, as here-
after described. The distribution of disbursements is grouped
under twenty-three general divisions called voucher titles. These
voucher titles are not shown on the ledger but are given a number
under which all subdivisions are registen.d, and the ledger ac-
count with each subdivision will be numbered with the number of
the voucher. Thus we find advertising, No. i. Under this title
are five active divisions and four blanks for additional subdivi-
sions, making the system expansive.

By this means we have a cross-reference. All subdivisions
numbered from i to 10 are under the voucher title No. i, and to
group these divisions from the ledger we take all accounts under
No. I. This method gives the greater subdivision of ledger ac-
counts, being eighty-nine in number, and at the same time reduces
the accounts on trial balance to twenty-four if desired. These
forms are printed on white paper for main office and on tinted pa-
per for agents.

A key to this voucher shows the title and number of subdivi-
sions under each voucher title so that at any time the sub-division
account can be determined from the number in column marked
"Key.*'

236

THE COMPLETE COST-KEEPER.

KEY TO DISTRIBUTION OF VOUCHER.
Adopted May i, 1896. Put in service, June i, 1896.

Voucher Tide.

Key-TiUe of Subdivision.

Ledger
Page.

Advertising.

Buildings
and

Lands.

Draughting.

Experimental.

Factory Pay-RoU.

1 Catalogue and pamphlets

2 Journal cards

3 Exhibits

4 Photographs

5 Entertainment

10 Buildings, Easton

12 Real estate

14 Buildings, Chicago warehouse . . . .

17 Salary and wages, productive, % . . .

18 Salary and wages, non-productive, each

19 Easton

20 Supplies, non-productive, Chicago . .

21 Plans

25 Blacksmith

26 Draughting

27 Electrical

28 Foundry

29 Machinery

30 Woodworking

35 Blacksmith, productive

36 Blacksmith, non-productive

37 Electrical, productive

38 Electrical, non-productive

39 Foundry

40 Machine-shop, productive

41 Machine-shop, non-productive . . . ,

42 Wood-shop, productive

43 Wood-shop, non-productive

44 Shipping department, productive . . .

45 Shipping department, non-productive .

17
18

19
21

27
28
29
30
31
32

36
38
40
42
44
46
48
50
52
54
56

THE COMPLETE COST-KEEPER, 237

KEY TO DISTRIBUTION OF VOUCHER— (Continued.)

Voucher "ntle.

Key-Title of Subdirision.

Ledger
Page.

Fixtures Account.

Freight.

Fuel.

General Expenses.

51 Fixtures, heating

52 Fixtures, office, Boston . . .

53 Fixtures, draughting . . . .

54 Fixtures, machine-shop . . .

55 Fixtures, electrical

56 Fixtures, blacksmith shop . .

57 Fixtures, wood-shop . . . .

58 Fixtures, foundry

59 Fixtures, storeroom . . . .

60 Fixtures, spring-water . . .

61 Fixtures, office, Chicago . . .

66 Express, distributed . . , .

67 Express, not distributed . . .

68 Freight, distributed . . . .

69 Freight, not distributed . . .

72 Fuel, power, heat

73 Fuel, blacksmith

74 Fuel, foundry

79 Stationery, Easton

80 Office supplies, Easton . . .

81 Insurance

82 Taxes

83- Traveling, Easton

84 Telegrams, Easton

85 Light, Easton

86 Water

87 General office expenses, Easton

88 Stationery, W. agt

89 Office supplies, W. agt. . . .

90 Insurance, W. agt

91 Taxes, W. agt

93 Traveling, W. agt

93 Telegrams, W. agt

94 Light. W. agt

95 Water, W. agt

96 General office expense, W. agt.

66
67
68
69
70

71
72

73
74
75
76

84
87
90
94

100
loa
104
106

III
114
116
"7
118
lao

133
123

124

126

138

130

i3t
13a
134
136
137
138

238 THE COMPLETE COST-KEEPER.

KEY TO DISTRIBUTION OF VOUCHER— (Continued),

Voucher Title.

General Expenses.
(Continued.)

Hand and

Machine Tools
and Supplies.

Installation.

Interest

and
Discount.

Key-Title of Subdivision.

Ledger
Page.

lOO

lOl

I02

103

104

105

106

107 Hand tools, machine-shop . . .

108 Hand tools, electric department .

109 Hand tools, blacksmith ....
no Hand tools, wood-shop . . . .

111 Hand tools, foundry

112 Hand tools, storeroom ....

113 Machine tools, machine-shop . .

114 Machine tools, electric department

115 Machine tools, foundry . . . .

116 Machine tools, wood-shop . . .

117 Belting, machine-shop ....

118 Belting, electrical department

119 Belting, blacksmith

120 Belting, foundry

121 Belting, wood-shop

122 Belting, storeroom

123

124

125 r

126

127

128 Foundry supplies

129

130

131

132

133

134 . .

135 Outsiae pay-roll

136 Traveling

137 Expense, general

138 Floating plant, Easton ....

139 Floating plant, Chicago ....

140 Freight and cartage

141 Wages, Chicago warehouse . .

142

143

144

146 Interest and discount ....

147

148

150
152
153
154
155
156
157
159
160
161
162
164
165
166
167
168

177

186
188
194
198
201
204
208

214

THE COMPLETE COST-KEEPER, 239

KEY TO DISTRIBUTION OF VOUCHER— (Continued).

Voucher Title.

Jigs and Dies.

Law.

Machinery.

Maintenance,
Buildings
and Lands.

Merchandise.

Key-TiUe of SubdiYision.

igs and dies, machine-shop. Easton
[igs and dies, elec. dept., Easton
figs and dies, blacksmith, Easton .
[igs and dies, wood-shop, Easton

157 Patents applied for

158 Collections . . ,

159 Legal advice . . .

160

161

Machinery, machine-shop
Machinery, wood-shop .
Machinery, foundry . .
Machinery, blacksmith .
Machinery, electrical . .

Shafting and puUeys, machine-shop
Shafting and pulleys, elec. dept
Shafting and pulleys, foundry . .
Shafting and pulleys, wood-shop

Shafting and pulleys,

Shafting and pulleys, storeroom . .

162
163
164
165
166
167
168
169
170

171
T72
172

173

174

175

176

177

178

179 Buildings .

180 Real estate

181 .

182

183

184

185

186

187
188
189
190
191
19a
193
194
195
196

Stores, Easton . . . .
Stores, electrical, Easton

Stores, Chicago .
Stores, installation
Royalty

Ledger
Page.

216
218
219
220

227
228
229

232
234

235
236

237
238

239
240
241
242
242
243

248
249

254
356

260
361
368

240 THE COMPLETE COST-KEEPER.

KEY TO DISTRIBUTION OF VOUCHER-(Continued).

Voucher Title.

Key-Title of Subdivision.

Oil and waste.

Operating.

Patents and

Goodwill.

Patterns.

Petty Cash.

Rent

Trading Account.

197 Oil

198 Waste

199

200

201

202

203 Salaries, office

204 Salaries, office

205

206

207

ao8

209 Patents and goodwill . . ,
210

211 .. ,

212 Patterns

213 Flasks

214

215

216 ,

217 H. M. S., petty cash . .

218 G. H. M., treas., petty cash

219

220

221 ....

222

223

224

225

226 Rent, office, Chicago . . .

227 Rent, storehouse, Chicago

228

229

230

231 Trading account , . .
232

Treasury stock ... *

Capital stock

Bills payable

Profit and loss ....
Surplus account . . .
Cash account ....
Bills receivable ....

Ledger
Page.

272
274

279
280

284

285
286

288
290
292

300
301

304

308

309
310

311
312
306
307

THE COMPLETE COST-KEEPER.

241

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I certify that
sons were emplo
respective amoi
forth.

llllf

THE COMPLETE COST-KEEPER.

(Voucher on back of Form 27.)
Voucher No Check No. .

THE NATIONAL SWITCH & SIGNAL CO.
Favor of

Address ,

Month of 19

Amount. $

General Distribution.

2.
3.
4-

5-
6.

7-
8.

9-
10.
II.
12.

13-
14.

15.
16.

17.
18.
19.
20.
21.
22.

23-
24.

25.

26.

27.

28.

29.

30.

32.

33-

34.

35.

Kev.

Advertising

Buildings and Lands,

Draughting

Experimental

Factory Pay Roll . . . .

Fixture Account

Freight

Fuel

General Expense

Hand Tools and Supplies.

Installation

Interest and Discount

Jigs and Dies

Law

Machinery

Maintenance Buildings and Lands.

Merchandise

Oil and Waste

Operating

Patents and Good Will

Patterns

Petty Cash Accounts

Rent

Trading Account

Amount.

THE COMPLETE COST-KEEPER.

243

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By Whom Received.

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Approved for payment,

VIce-Prea. and Gen'l Manager.

2 % :

THE N/
V

I certify that the above mentioned per-
sons were employed as shown, and that
the respective amounts are due them as set
forth.

Form 28.
Piece Work Pi

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THE COMPLETE COST-KEEPER.

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THE COMPLETE COST-KEEPER.

245

Form 30,

Please DATE and SIGN the accompanying Voucher, and return
same promptly to the address given below.

Tear off the annexed slip, and use it as address on return
envelope.

GEO. H. HANSEL, Sec'y and Treasurer,

The National Switch & Signal Co.
EASTON, PA.

Form No. 30. Voucher Address-Slips. Printed in red ink. Size, 5 inches wide bv 3 inches
high. Instruction on top halt, and line of perforations in middle, as shown, and
gummed on the back. This insuies correct mailing address on vouchers re-
turned to the factory by foreman of installation.

No. 27, Pay-RoU Voucher. The pay-roll voucher has the
same distribution of voucher titles and subdivisions, the form
of face being made to accommodate the necessary data, showing
name of man, amount paid, etc. In order that the same form for
back may be used on all vouchers and yet make it convenient to
distinguish between the various vouchers readily, different tints
of paper are used.

The pay-roll voucher must be signed by all persons regis-
tered thereon, whether employed in factory or on outside work.

No. 28, Piece-Work Pay-Roll. This form is similar to form
twenty-seven, rate per piece taking the place instead of rate per
hour. It is also distinguished by time.

No. 29, Voucher Register. This is in book form and has
a top-heading showing each of the twenty-four voucher titles as
well as the date and number of check, and voucher number, the
right-hand column showing the date voucher was returned, re-
ceipted, and transaction closed.

No. 30, Address Slip. This slip is inclosed with all vouch-
ers sent out by treasurer and is for the use of the person return-
ing voucher, to insure accuracy of address.

No. 31, Credit Memorandum. This form is used for credits
covering merchandise returned, allowances, etc.

246 THE COMPLETE COST-KEEPER.

Form 31

Easton. Pa too. .

THE NATIONAL SWITCH AND SIGNAL CO.

•

.Dr

Form No. 31. Credit Memorandum. %% ins. wide X 7^ i°s. high.

It often happens that orders for the product of a factory are
given by purchasers who are not fully informed as to the various
details which go to make up their purchase.

Thus a contractor for road-making might want a small com-
plete plant for breaking stone and fitting it for his use, and he
might order such a plant without specifying the exact style and
dimensions of engine and boiler and screens and so on, and so
might find, when the order was filled and his plant running, that
he had not been furnished with what he then, with his knowledge
gained by experience, might think should have been given to him.
In such a case, if there are deferred payments, the purchaser is
very likely to refuse further payment until his purchase is made
satisfactory, or if all payments have been made, the dissatisfied
buyer commonly demands changes and substitutions, and these
demands often result in highly undesirable legal proceedings.
Even if the extreme of a resort to law is not reached, very un-
pleasant feelings are created, and the whole situation is far from
what is desirable to either seller or buyer.

THE COMPLETE COST-KEEPER. 247

In the switch and signal business the buyer very seldom
knows exactly what his purchase includes, and hence, even if his
order for a certain switch and signal plant is filled by the manu-
facturer in the most painstaking and conscientious manner, the
management of the road making the order may be dissatisfied
with what is received, because in many instances there are two
or more forms of details filling the same office, one form being
more costly than some other, which cheaper form, however, may
be fully adapted to the requirements of the situation. Very natu-
rally the purchaser on finding he has not been supplied with the
more costly form, may think the maker has failed to give him
what he should' have had. In other cases, some details may safely
be omitted altogether, and in the absence of a specific list of
parts to be furnished the maker may exercise his judgment, and
leave these not absolutely essential parts out of the order; and
complications may arise over such action.

To avoid all this possibility of controversy and ill-feeling,
the writer prepared form 102, which is a contract form in which
all details and dimensions are so precisely specified as to leave
no possible room for question as to the filling of the contract, or
the furnishing by the manufacturer of exactly what he agreed to
furnish, or what and when the purchaser shall pay. This form
102 is made, of course, to fit a switch and signal business only,
but it shows what is needful in any business in a contract which
shall avoid all possibilities of controversy, and that is a complete
specification of every detail, so that nothing is left to that "mutual
understanding" which so often results in "misunderstandings."

After this form 102 was made, it was submitted by the
writer to friendly railway officials for comment, and provoked
the criticism that its author had forgotten that charity begins at
home, and had tied himself down more closely than he need have
done — that, in short, such exact specifications were unadvisable,
for the manufacturer, at least.

The writer, believing that a precise understanding at the out-
set was the surest element of harmonious dealing, disregarded
these well-meant warnings, and placed form 102 in use. with the
most satisfactory results, as it is found to save a vast amount of
time and correspondence, and to insure a continuance of fjfood
will, which, to the seller, is perhaps the most important feature

248 THE COMPLETE COST-KEEPER,

of all commercial transactions, for he is but poorly paid for his
work if it does not bring him continued orders.

There is no working difference between a contract and a
machine-drawing. Both are ostensibly exact guides for future
performance.

What would be thought of a chief draughtsman who advo-
cated the policy of leaving part of the dimension figures off his
drawings, so that there might be something "to go and come on"
in the shop?

Yet such a procedure compares precisely with the practice of
drawing contracts which are exact on their faces, and yet are
so worded as to leave loopholes or variations, not easily discern-
ible by the non-technical purchaser ; and precisely the same con-
fusion and dissatisfaction follows the making of ambiguous con-
tracts which might be expected to follow the shop use of drawings
from which part of the dimension figures were omitted.

It is not asserted that all inexactly drawn contracts imply
the intention of sharp practice on the part of the manufacturer;
in many cases the contract is purposely drawn so as to "leave
some margin"; in other cases the contract is obscure or indefi-
nite simply from want of care and foresight ; but the result is the
same in either case ; there is an opportunity for two readings, and
dissatisfaction is certain to follow, the same as in the case of the
drawing with the figures omitted.

Very clearly, the contract should be as full and accurate in
detail as the drawing, and neither should be so made as to per-
mit more than one fixed line of procedure in execution, for the
guidance, protection, and final satisfaction of both manufacturer
and purchaser.

THE COMPLETE COST-KEEPER. 249

Form 102.

THE NATIONAL SWITCH & SIGNAL CO.

Articles of agreement made and entered into this day

of A. D. 190 , by and between the

party of the first part, hereinafter called the Railroad Company, and
The National Switch & Signal Company, of Easton, Penna., party
of the second part, hereinafter called the Signal Company.

Whereas, the said Railroad Company, party of the first part, is
desirious of having constructed a system of Signals and Interlocking
for the protection of traffic over and across the several switches and

tracks, at or near the Station or City of , in the state of ,

more particularly described and designated in the accompanying plan

marked dated , which plan enters into and is made a

part of this agreement.

And whereas, the said Railroad Company is, so far as this agree-
Lnent is concerned, the representative of all the other Railroad or Rail-
way Companies whose tracks, switches, signals, right of way or other
properties are shown in said plan to be involved in the said system of
Signals and Interlocking for the protection of traffic over and across
the several switches and tracks.

And whereas, Mr , the Engineer, is the

representative of the said Railroad Company, so far as the direction
cf the construction of said system of Signals, etc., shown in said Plan
is concerned ;

WITNESSETH, that for and in consideration of the covenants
and agreements hereinafter set forth to be made and kept by both
parties hereto, the said Signal Company does hereby covenant and
agree with said Railroad Company to furnish all material and labor,
hereinafter described to be furnished by it, and to execute, construct
and completely install the system of Signals and Interlocking in a
workmanlike manner and in accordance with the said Plan and the
specifications of even date herewith, hereto attached, which specifica-
tions enter into and become a part of this agreement ;

Provided, however. That the said Railroad Company will do all
Track Work, furnish all Ties in place, and prepare all Switches, Derails,
Movable Point Frogs, etc., reaay to be connected to the Interlocking
Mechanism ; to do all preliminary grading and prepare surface of ground
where connections are to be run. to provide foundation for tower with sills
and lead-out timbers bolted in place, before the Signal Company is noti*
fied to commence work, to do all blasting: to provide proper drainage;
to furnish broken stone, sand and cement for concreting crank, compen-
sator and wheel foundations (if concrete is required in specifications): to
provide boxing for pipe and wire lines across all streets, through and
under all station platforms and across tracks if desired : to provide per-
mits for building tower and digging across streets, (if necessanr); to fur-
nish free transportation over its own lines for men, tools and material,
both going and returning.

The said Signal Company also further agrees to save and keep harm-
less the said Railroad Company against any loss or expense by reason of
any suits for alleged infringements of patents which may arise or bo
caused by the use of any of the articles, apparatus and machinery to be
furnished the said Railroad Company by the said Signal Company under
this agreement.

250 THE COMPLETE COST-KEEPER.

Form 102 — (Continued).

The said Railroad Company, fcr and in consideration of the cove-
nants and agreements made by the said Signal Company, hereby cove-
nants and agrees to pay to the said Signal Company the following rates
and prices, to wit :
For Installing Plant, Complete, as per Specifications, $

One-half the contract price to be paid upon receipt of the material, and
the balance within thirty days after the completion of the work.

In case the Railroad Company desires the Signal Company to fur-
nish the MATERIAL ONLY, the same will be furnished to meet the re-
quirements of the specifications, which will not include boxing, nails and

paint, for the sum of $ f. o. b. Easton, Pa., to be paid within

thirty days after shipment of material.

In case the said Railroad Company shall order the said Signal
Company to make any changes in the said plan or specifications, herein-
before referred to, thereby requiring work or material not included, con-
templated or specified in the said specifications and plan, it shall make

such order in writing, signed by the said Mr , Engineer,

or authorized by him in writing, and shall be accompanied by a plan
clearly specifying the changes and additions required, and upon receipt
of such orders, specifications and plan, properly signed, the Signal Com-
pany will perform such work and furnish such material, for and in consid-
eration of the payment to said Signal Company by said Railroad Com-
pany of the cost of such additional work and material, plus % on

the actual cost of labor, it being expressly understood that the cost of
such material will be calculated upon the actual selling price.

And it is also further mutually and expressly understood and agreed
by and between the parties hereto, that the said Signal Company shall

g^ve notice in writing to the said Mr Engineer, setting

forth the date when all the said work specified in this agreement will be
completed and ready for service, said notice to be given seven days in ad-
vance of the completion of the work, and the said Mr

Engineer of said Railroad Company, upon receipt of such notice from
said Signal Company, shall make an inspection of the work, and upon
completion of same in accordance with this agreement, he will signify his
acceptance of said work by filling out the accompanying Acceptance
Blank, whereupon all obligations and payments which are attendant upon
the acceptance of said work by said Railroad Company, will be in force
And, in case the said Railroad Company shall not be ready to put said
plant into service at the time of its completion, and shall require the Sig-
nal Company thereafter to assist in putting said plant into service, then
the said Railroad Company shall pay the said Signal Company for all
such services the wages and expenses of all men required and furnished
by the said Signal Company while so retained.

It is expressly understood by and between the parties hereto that the
apparatus to be furnished and installed is of the style made by the said
Signal Company, which is more particularly described and illustrated in
the Reference Catalog of said Company, which catalog is made a part of
this agreement by reference.

The above proposal is based upon present prices, and will be subject

to change after days.

The Co.

Easton, Pa. By

The National Switch & Signal Co.

Forward material to the Co.,

Care at

THE COMPLETE COST-KEEPER, 251

Form 102— (Continued).

N. B.— Please advise Easton, giving heighlb and Nvidth of all rails
included within the limits of interlocking. TEis information must be fur-
nished before any material can be shipped.

Note. — Derails not included. The Signal Company will furnish
Single Point Derailing Switches, 15 feet long, at Fifteen Dollars (|i 5.00)
each, f. o. b. Easton or Chicago. It will be necessary for Railroad Com-
pany to furnish plan of rail section.

THE NATIONAL SWITCH & SIGNAL CO..

EASTON, PENNA.

Specifications for the Interlocking and Signal Work to he carried

out in accordance with an agreement made the

day of A. D. 190 , by and between the ,

party of the first part, and The National Switch & Signal C(»mfa.ny,
of Easton, Pa., party of the second part.

GENERAL SPECIFICATIONS.

Machine. Interlocking Machine to be , as illustrated,

)age *R. C. Frame arranged for

■forking Levers and Blank Spaces.

pa]
W<

signals.

Signal Home Signals..

CoNNfc.:TioNS. Distant Signals.

Dwarf Signals .

PIPE AND WIRK LINES.

CARi(ikRS. Pipe Carriers to be anti-friction, spaced 8 ft

apart. Wire Pulleys spaced 24 ft. apart.

TowiR. The dimensions to be The foundation

for Tower and Machine with Lead-out Timbers bolted in
place will be furnished by the Railroad Company. The
Tower to be located as indicated on plan upon which the
proposal is based.

DETAILED SPECIFICATIONS.

MACHINE.

Machine. Levers to be pivoted on a common centre spaced 5''

centre to centre, moving through the same arc. Top
plates and girders to be made in sections for four and
eight Levers.

Numbering and Levers to be numbered from left to right : Switch

Arrangement, and Lock Levers in the centre; Signal Levers at the
end ; Blank Spaces, if any, between the Lock and Signal
Levers. In making additions to existing machines, thif
arrangement to be modified if necessary.

LocxrNG. Locking to be Preliminary Latch-locking ; the first

net in the operation of the Lever to lock all conflicting
Levers, pages 8 and 10 R. C.

Frame. Macnine to be supported by frame timbers 4'^ x 10^'

gine upon sill of 5^^ x 10'^ oak. This sill to have its ends
rmly seated in walls of foundation, as per plan.

• R. C. Refcreoce Catatofc.

2^2

THE COMPLETE COST-KEEPER.

Form 102 — (Continued).

LEAD-OUT.

Pipe.

Wire.

Lead-out for Pipe Connections to be by Vertical and
Horizontal Cranks, pages 26, 28, 30 and 32 R. C. Rock-
ing Shafts, if required, are to be 2}/^^^ diameter with
turned Bearings, pages 26 and 28 R. C.
Lead-out for Wire Connections to be by G^-', 8^^ or 10'^
Vertical and Horizontal Wheels, pages 26 and 32 R. C.
The Wire to be attached to the Levers by adjustable con-
nections.

PIPE CONNECTIONS.

Pipe and Main Pipe Lines to follow the general directions as

Connections. indicated on plan accompanying these specifications, and

laid 2%'^ between centres. The line nearest track to be

from gauge.

Pipe to be of Iron or Steel, i inch in diameter ; con-
nections to be made with couplings 2}-^^^ long ; plugs 6^^
long to fit inside of pipe and secured in place by two }/^^^
round head rivets, page 40 R. C. Couplings not to be
closer than 8''^ to a Pipe Carrier, when Lever is on centre.
Bends. Bends to be made in Solid Rod and not in pipe, and

no bends to be greater than 3^''
Carriers Carriers to be Single, or Double Anti-Friction,

page R. C, as specified, fixed to foundations by lag

screws.
Carrier Carrier Foundations to be of 2%^^ x Z^^ oak for top

Foundations, and sides ; 2^^ x 8^^ for bottom. Tops of Foundations to

be inches below top of rail, except where Pipe Lines

cross tracks, in which case they are to be. . . .inches Ijelow
top of rail. Where Pipe Lines are run between tracks,
the Foundations may be made lower than specified above,
provided proper clearance is maintained. ( Clearance to
be specified by the Railroad Company.)

. Bell Cranks to be of Wrought Iron, fixed in suitable
Cast Iron Stands and secured to Foundations by Bolts
and Lag Screws of suitable lengths; Vertical Cranks by
"^^^ bolts. Horizontal and Box Cranks by '^^^^ Bolts and
Lag Screws, pages 28 and 42 R. C.

Crank Foundations to be of 4'^ x 12^^ oak for tops and
sides; 2^^ x 12^'' bottoms. Foundation to be fixed in con-
crete, unless otherwise specified, to be set so that centre
line through long way of Foundation will bisect angle
made by connections.

All lengths of Pipe over 100 ft. to be compensated.
An additional Compensator to be provided for all lengths
over 700 ft. Each Switch, Lock and Signal (if pipe con-
nected) to be properly compensated. Compensators to
be of Lazy Jack pattern, fixed to Foundation \>y%'^ bolts
and lag screws of suitable length. Compensating Levers
and Bell Cranks to be used as Compensators, if conven-
ient. The amount of Pipe pushed must equal that
pulled and vice versa.
Compensator Compensator Foundations to be of 4''' x 12^^ oak for

Foundations, tops and sides; 2'^ x 12^^ bottoms. Foundations to be
fixed in concrete, unless otherwise specified.

Cranks.

Crank
Foundations.

Compensators,

THE COMPLETE COST-KEEPER.

253

Form 102— (Continued).

Adjusting
Screws.

AWS AND
INS.

Means for adjustment to be provided for Switches,
Switch and Lock Movements, Facing Point Locks, De-
tector Bars, etc. Adjusting Screws or Screw Jaws,
page 40 R. C., to be used, unless adjustment is provided
for by some other means.

Plain, Wide, Double and Slotted Jaws, to be of
Wrought Iron, fitted with Standard Pins %^^ diameter.
Centre pin of Cranks to be standard i>^'^ diameter, page
40 R. C.

SWITCHES, ETC.

Switches.

Switch and
Lock Move-
ments.

Facing Point
Locks.

Switches, Single and Double Slip and Movable Point
Frogs to be operated by Pipe with Jaw and Pin Connec-
tion to Head Rod, or by Threaded Rod, with Jam Nuts,
passing through Head Rod Lug.

Switch and Lock Movement, page 62 R. C, to be
operated by Pipe and fixed to a 4^^ Oak Foundation, se-
curely bolted to three ties, extending beyond the rail, and
and bolted through a %'^ x 6'^ Iron Gauge Plate extend-
ing under both rails, to insure relative position, page
60 R. C.

Facing Point Locks to be operated by Pipe, the
plunger casting of which is fixed on tie outside of rail
and bolted through a %^^ x 6'' Iron Gauge Plate extend-
ing under both rails. Lock Rod to be jointed, page 54
R. C. Plunger to have a blunt end, and to clear lock rod
not less than i'\ nor more than iV/', when in normal
position. Stroke to be not less than ^%''. Each facing
point lock to be fitted so that it w^ill not be possible for
Plunger to enter hole of lock rod if Switch or Moveable
Point Frog is .,','" open in either position.
Detkctor Bars. Detector Bars to be located as shown on accompany-
ing plan and to be 45 ft. long, placed outside of rail and
to work in a plane slightly inclined from the vertical
toward the rail. 12 Rail clips to each regular 45 ft. bar
pages 52 and 54 R. C. If, at switch points, clips cannot
De clamped to base of rail, they are to be fastened by
bolting to flange. Bar to rise not less than ^"^ above top
of rail. End clips to be not more than 12"^ from ends
of bar.

Wire.

Wire Eves and
Split Links.

Pulleys.

wire connections;

All Main Wire Lines to follow general direction
as indicated on plan accompanying these specifications.
The line nearest track to be from gauee line.

The Wire to be Single Strand No. 9 Giuvanized
Steel, furnished in 5 ft. coils. Tensile streneth of not
not less than 1300 lbs., with an elongation of from ^%
to Z%. Standard Telegraph Splice to be used.

Where Wire joins a Chain, Clevis or Adjusting
Screw, a Wire Eye. and Split Link to be furnished. A
Lap Joint to be made over Wire Eye, Split Links to be
of Steel and have their ends well hammered down to
prevent fouling.

Wire Pulleys to be made with Malleable Frames
and Cast Iron Wheels, page 46 R. C. fixed to founda
tions or stakes by a'./' No. 12 Wood Screws.

254

THE COMPLETE COST-KEEPER.

Form io?- (Continued).

Stakes. Stakes to be 3''X4''X4 ft, Oak, pointed and driven

firmly into the ground.

Chain Wheels. Chain Wheels to be Cast Iron, 8^^ outside diameter,

page 48 R. C. To be fastened to foundations by ^^'X
3''' Lag Screws.

Wheel Founda- Wheel Foundations to be of 23^'^Xio''' Oak for tops

TioNS. and sides, 2'^ X 8^^ bottoms. To be set as far as possi-

ble, so that center line through long way of Foundation
will bisect angle made by connections.

Chain. Chain to "be ^^' proof, and not to be spliced with

Split Links if Splice is to pass around Chain Wheels.

Compensators. Wire Compensators not to be furnished except

where specified.

Adjustment. Wire Adjusting Screws, page 32 R. C, to be pro-

vided for each line of wire and placed in Tower above
floor l^ne with right-hand threads uppermost.

SIGNALS.

Signals. Signals to be fixed as shown on accompanying plan

and of the Standard Semaphore Type, pages 74, 76, 78,
80, 108, 112 R. C.

Poles. Standard Signal Poles to be 7^^ square at top and

not less than 10'^ square at bottom. Bracket Signal
Main Pole to be 12*^ square, and Bracket Poles 7'''
square, page 78 R. C.

Height of Arms. The lowest arm to be not less than 24 ft. above top

of rail. Cross-arm or Bracket Signals to be not less
than 21 ft. above top of rail. Oue and Two-arm Signals,
standard height, to be fixed not less than 5 ft. and
Three-arm and Bracket Signals not less than 6 ft. deep
in ground

Lamps. No. 6 round Lamps to be furnished with each Sig-

nal, unless otherwise specified.

Torpedo Signals. Torpedo Signals, pages 124, 126 and 142 R. C, to
be furnished when so specified.

Selectors. Selectors to be fixed either in Tower or on ground

and operated by Pipe Connections, between the Lever
and Selector.

Boxing.

Painting TowKR.

JTachine.

Pipe Lines, Cranks, Pipe Compensators, Chain
Wheels and Wire Lines on Pipe Carrier Foundations,
to be boxed, except across tracks, through Streets and
Station Platforms. Boxing to be of White or Yellow
Pine, sides 2^^X8^^ tops not less than i}4^^ thick. Mov-
able Covers to be provided for all Cranks, Compensat-
ors, Wheels, Selectors and Lead-out.
painting.

The inside of Tower, excepting Floor to be fin-
ished in hard oil. All outside Wood-work to receive
one coat priming and two coats finishing in color to suit
the Railroad Company.

All imfinished parts of Machine, except that part of
the Lever above the Latch Rod Spring Box, the Tap
]>ets, Locking Bars and Dogs, to be painted two coats of
Asphaltum Paint. The Levers and Latch Rods be-
tween the Latch Rod Spring Box and Handle to be
painted as follows :

THE COMPLETE COST-KEEPER

255

Form 102 — (Continued).

Machine. Switch Levers Black

Switch and Lock Levers, Upper half, Blue ; Lower
half. Black

Lock Levers Blue

Frog Levers Yellow

Signal Levers, Home and Dwarf Red

Signal Levers, Distant Green

Spare Levers White

Unfinished part of Latch Handle (inside) to be
painted same color as Lever.
Signal Arms. Signal Arms to be given one coat of priming and

two finishing coats, as follows :

Home Signals, English Vermilion on face side, with
white stripe 6'' wide, center of ajLripe 18^' from outer
end. White on reverse side with black stripe, same
width and location as white stripe.

Dwarf Signals, English Vermilion on face and white
on reverse side ; no stnpe.

Distant Signal, dark lawn green on face side, with

V shape white stripe 6'^ wide, edges parallel to end of

arm and 15'''' from same. White on reverse side with

black stripe, same width and location as white stripe.

Posts and Iron Posts to be given one priming and two finishing

Work. coats of paint to three feet above top of rail,

below that to be painted black. All iron work to be
painted two coats black asphaltum.
Pipe Links. Pipe Lines and all Iron Work, except Detector

Bars and finished parts, to be painted one coat metallic
oxide.
Boxing. Boxing to be painted one coat metallic oxide.

general.
Cotters. Cotters to be properly opened. No half Cotters,

Wire or other substitutes to be used.
Bolts. Bolts to be so fixed that they can be readily reached

by a wrench to tighten them.
Concrete. Concrete to be of good quality cement, clean sharp

sand, and stone trtat will pass through a a'' ring ; in the
proportion of, one of cement, two of sand and three of
stone, to be turned over twice dry and then well mixed
together with the smallest possible quantity of water.
Concrete to be not less than iS'' deep from top of Foun-
dations and levelled off flush with top.
Plans. Diagram of tracks, two copies, one for tower and

the other for Railroad Company's record, one Locking
Sheet, one Dog Diagram and two Manipulation Sheeti
to be furnished by Signal Company.

RAILROAD company.

Railroad Com- The Railroad Company will do all Track Work.

PANY TO Furnish, furnish all Ties in place and prepare all Switches, De-
rails, Movable Point Frogs, etc., ready to be connected
to the Interlocking Mechanism ; to do all preliminary
Grading and prepare surface of ground where connec-
tions are to be run, before the Signal Company is
notified to commence work ; to do all Blasting ; to pro-
vide proper drainage ; to provide fouodatioo for Tower
with Sills and Lead. out Timbers bolted in place ; to fur-

25^)

THE COMPLETE COST-KEEPER.

Form 102— (Continued).

nish Broken Stone, Sand and Cement for Concreting
Crank, Compensator and Wheel Foundations (if con-
creting is required in specifications), to provide Boxing
for Pipe and Wire Lines across all Streets, through and
under all Station Platforms and across tracks if desired;
to provide Permits for building Tower and for digging
across streets (if necessary); to furnish Free Transport-
ation, over its own lines, fqr Men, Tools and Material,
both going and returning.

ctf

'rt

'ai

C/2

III

C/3

t/3

J-

t-H

Form No. 102. Proposals and Specifications Form. Folio, Sj4 inches wide, folded, by 13K
inches high. Three pages of text, and docket form crosswise on fourth page.

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e B

Form 139.

Plan Date

PROPOSAL MEMORANDUM.
Estimate No Date ,

Crossing of W

ith

Description.

P.C

1 Pro-
powO.

No.

D«M»ipll<m.

Material, Mechanical Iron. . .

....

Active Levers

Heavy Boxing

Foundations and Stakes

••

....

••

...

Blank Spaces

Switches, Single

Poles

* * *.* *

. .

Boxing, Paint and Nails.

Slip
Double **
Slip and M.
M. P. F. Only

Labor, Mechanical

Extra Material.

P. F.

Small Fittingfs

Concreting

...

Derails

Skotch Blocks..
Facing Point Lc

Painting Poles

Cartage and Handling

....

►cks. .

Superintendence, Plans, etc..
Railroad Fares

••

....

••

...

Switch and Lock mov
Bolt Locks, Single. . .
" Double...

Selectors

Mechanical Slots

Crossing Bars

Bridge Locks

Bridge Coupler

Engine Locks

ements . . .

Traveling Expenses

Royalty

Freight, Material, Iron .

Foundations

Totals

....

Fontaine Crossings

TOWER.

Complete, with foundation.
Complete, without *'
Sire of Tower

Signals.

xIZ

No.
Arms.

How
Connected

••

....

Home

..I..
..2..

Totals

~"~

..3-
..4..

Machinery only, f.o.b. works

—

— ^•

•| Half Brae
Bracket.

ket...

.►I..

Plans, etc

. .1. .

Totals

....

~~~~

■ 4-

Material. Electrical

—

•' Bracket..
Dwarf

..I..

Trunking, Stakes and Paint.
Battery Chutes.

. .1 ..

. .9. .

Poles

Pot

Labor

....

Torpedoes

Supt. and Plans

Travelinc' Exoenses

••

....

Dectrical.

R R Fare

....

Relays

Block Instmm'U

Freight

....

Switches

SUflf

Royalty

....

Locks

Annunciators...

Signals ^..

Repeaters

...

Totals

—

....

Indicators

S.ots

NoTs.— Machinery only include* ererythinfc ucept polea, f oandaiiona. atakea, htmber, polm sad aalli.

Form No. 139. Proposal Memorandum.
>roduct.

•ofwiUah

This form Is ute«i to note the detailad itema of each
finished pi
With a system of minutely sub-divided cost-keepInK, " estimatinfc** becowea parely machaalcal,

instead of unusual powers of memory and roresight, only ordinary clerical ablftty. Hera follow the .

five consecutive estimates with their actual coats, taken at random' from the file of coatracl sjmopeia carda, da*-

ladmated Cost.
$»«>7.oo

&•*
1006.00

cnbed later.

Actual Cost
•ss97.eo
lot.«o

IJ67.00

1531.00 isU.ao

tisi.00 ii»7oo

Tvach of thr<:r r-^timntr^ includes Inatallaoon of the plant no\4 tlti* tn«iallation is an outdoor job, Isubjecl to
•variations dur t<. •x.ii. :tcceastbllity, aod the waathar. Th'- iii"taii.iii..ti < o*t Is a mattar of aatimala a gaaas.
founded on p.nst nprrirnce: In moat csiaa the laatailatiun riiUiii.«tc iii hiffh ; in thta oaa caa* it to low, thoa
showing ihr iinjM.ssiKiiitv oF accurate Kiiaaawort. aran when the guaasar has had laiy asparlaooa In Iha Haa

wflich fomiB llir Hlllijr. t "t ■< | >rCulation.

This IVupoft.il Meiitui .ktiiltiti. is prlnlod ott yallow p«p«r, and to I H Int. wida a 10 K <"•• klfch.

26o

THE COMPLETE COST-KEEPER,

CARD FORMS.

For descriptive purposes these cards are alphabetically desig-
nated. The card forms constitute a complete exposition of the
business of the concern.

Card "A" is for the principal cash on one side — on the reverse
side, petty cash. This card is filled at the end of each week and
transmitted from the factory to the general manager.

Card "B," treasurer's statement of current account, is filled
out each week and transmitted to the general manager.

Porax jfn

PRINCIPAL CASK

. •> 19. .

Date.

Received.

Disbursed,

To Total Cash Reported

" Deposited

By Total Cash Reported

" Accounts Paid

•• Petty Cash

" Balance Bank of America

" " Northampton Co, Bank

Totals :

::::::::

Card A. Principal Cash.

PETTY CASH.
Week Ending ,19 •

Date.

Received.

Disbursed.

To Total Cash Reported

" Cash Sales

" Received from Principal Cash. . . .

By Total Cash Reported

•♦ " " Expended

" Balance on hand

Totals.

Card A. Petty Cash.

THE COMPLETE COST-KEEPER.

261

Form 39. TREASURER'S STATEMENT.

Current.

Week Endine. ...

Ri'SOUrces. ll.iahilitio* 1

1 '

Cash Balances

Bank of America

Northampton Co. Nat'l Bank . .

Petty Cash Treasurer

Bills Receivable 1

Acc'ts Receivable. Prev'ly Rep.
Orders Billed 1

Contracts Billed |

Accounts Paid 1

Sundry Credits

Sundry Debits

Accounts Receivable 1

Accounts Payable

Oakleigh Thorne Dept. Agent.
Bills Audited

Bills not Audited

:::::. "I

Bills Payable. Notes

•

Totals.

Card B. Front and Back.

TREASURER'S STATEMENT.

Tenders Submitted

•

Contracts Received

1 ;• ...;;::

262

THE COMPLETE COST-KEEPER.

TREASURER'S STATEMENT.

Tenders Submitted

Week Ending

. .

li II

II II

Contracts Received

Week Ending

II 11

1 *

II «i

II II

Orders Received

Week Ending

11 >i

• 1 ti

.1 1.

;

TREASURER'S STATEMENT.

Month Ending

Date.

Accts.
Receivahlc.

Balance Sheet

Orders Billed

Contracts Billed.-

Accounts Paid

. .

Sundry Credits

Balance Sheet

Shop Pay Roll

Two Weeks Ending

Salaries Office, Easton

** " Chicago, .

New York

Card C.

THE COMPLETE COST-KEEPER.

263

Card "C" is the treasurer's monthly statement.

Card "D" shows the distribution of cash for the month.

Card "E" is the treasurer's daily report, made by the trea-
surer at the factory to the manager in New York.

Card "F" shows the total billing of the month as compared
with the same month of previous year.

Card 'G." tenders submitted for the week. Reverse side,
contracts received for the week.

Card **H," orders-received card, made immediately upon re-
ceipt of order at works, and sent to general manager.

Form 41. DISTRIBUTION OF CASH.

Month of 19..

Distribution.

Received. {| Disbursed.

1 Receipts

To Balance on hand

'* Accounts Paid

" Cash Sales

•• 0. Thorne Dep

....

** Sundries

....

Disbursements.

Advertising

Building' and Lands

Drauc^htincT

ExDerimental. .

Factorv Pav Roll

Fixtures

Freight

Fuel

General Expense

Hand Tools and Supplies

In«»t''ill»tion .. ^ ^ ..,..,. .

Interest and Discount

Jigs and Dies

L.aw Exnense.

Machinery

Maintainance B. & L

Merchandise .....••■•...•.

Oil and Waste -.

OneratinfiT .

Amis Forwarded

CardD.

264

THE COMPLETE COST-KEEPER.

CONTINUED.
Month of , 190

Distribution.

Received.

Disbursed.

Amts. Forwarded.

Patents and Goodwill ,

Patterns

Petty Cash Accts

Rent

Trading Acct

0. Thome Dept 1

Balances.

Bank of America

Northampton Co. Bank

Petty Cash Treas

This "orders-received'^ card, H, clearly sets forth the name
of the purchaser together with the order-number as received, and
the shop order together with the items ordered, and is also used
to indicate when the bill is rendered, statement sent, and accoun t
settled. With these cards **H" filed in chronological order in th'
cabinet, it is easy for the general manager to keep in close toucli
with the accounts receivable, as the cards make it unnecessary for
him to inquire of the secretary or of the book-keeper concerning
any account. When a bill is sent out from the factory it is accom-

THE COMPLETE COST-KEEPER.

a6S

Date TREASURER'S DAILY REPORT.

To Balance B'k of America. . '

'* *' ** Northampton
Dep>osits

By Vouchers issued No. to No.

'* Balance B'k of America. .

*• " " Northampton

Card E.

panied by a short letter of explanation, setting forth the total
amount of the bill and the order-number. A carbon copy of this
letter is forwarded at the same time to the general manager, whose
clerk transfers the information contained thereon to the "orders-
received card," the general manager having the treasurer's daily
report which shows in itemized form the amounts received and
from whom, each day, which determines the exact time each ac-
count is paid, and it is so indicated on the * 'orders-received card."
As the order cards show that a bill is paid, the card is taken from

BILLING MONTH OF

Same Munth
last Year.

Mechanical

Electrical

Bushnell

Miscellaneous ...

....

. . — .

....

Card P.

266

THE COMPLETE COST-KEEPER.

CONTRACTS RECEIVED WEEK ENDING

TENDERS SUBMITTED WEEK ENDINP/

,. . 1

....

Card G.

THE COMPLETE COST-KEEPER: 267

ORDER RECEIVED CARD.

Name Railroad

Order No Date Stop Order No

Articles [

Bills Rendered.
Statement Sent
Paid

Card H.

the front and placed in the back of the index, the object being to
keep all order-cards accessible in case inquiries are made during
the year concerning the order. After that time they are taken out
and filed away. In connection with this card-filing cabinet, the presi-
dent of the company receives a duplicate card at his residence, and
files it in his duplicate cabinet. This gives him full details each
morning regarding all matters of importance.

A daily statement of condition of orders in work is trans-
mitted from the factory to the general manager. This is a state-
ment in regard to every order in process of production in the
works, showing particularly the thing required to be done or mate-
rial furnished to complete the order; also showing comparison
between the stores-ledger and actual account of some particular
item. This is done to keep close check on the work of the stores,
also to show the number of men employed in each department
every day.

268

THE COMPLETE COST-KEEPER.

Card-Filiag Cabinet, Hansel's simultaneous locking of all four drawers.

Card-Filing Cabinet, open.

THE COMPLETE COST-KEEPER.

269

MACHINES SHIPPED.

Month of

Date.

Location. R. R.

Ko. 1 Levers.

Spare.

•

Card I.

Card "I" is a statement of machines shipped for the month.
Card "J" shows estimated cost, proposed actual cost, resuhs,
and history of each contract.

Card *'K," is an address memorandum, showing the official
title of the person, and memorandum of all catalogues, pamphlets,
etc., sent to him and the date sent. It often happens that requests
for the forwarding of printed matter are made by those who
already have in their possession the matter requested. A refer-
ence to card '*K" shows at once what printed matter may be sup-
l)osed to be in possession of the person named.

Card "L" is called the reference card, and upon this blank
notations are made of any matter connected with the business.

Card "M" is a blank card upon which is made any memoran-
dum especially relating to callers, setting forth any important con-

270

THE COMPLETE COST-KEEPER.

NAME OF FOREMAN.

No.

Material

Date.

Remarks

Levers . ....

Material Ship'n«»<l

Switches Single ....

" Rec
Work comm

•^

" Slip •'

f»n'r1

" " Double

*• completed

•• " M. P. F

Derails

e(\

Signals Home One Arm P. or W
" Two "
*' Distant

Terms.

" Dwarf

" Automatic

" Manual Cont. . ...

" S. Protection

....

Card J. — This card is a summary of the complete history of each contract, as will clearly
appear upon examination of the headings. Its value is not only historical, for it forms an
. accurate oasis for future proposals.

Proposal to Plan No.
' RAILROAD AT

Description.

Estimated
Cost.

Proposal.

Actual
Cost.

Results. 1

Profit.

Loss. 1

Mfltprial Mechanical..

" Electrical . . .

Lahor Mechanical ....

Freight .... . . • •

R R Fare

A TiT^nraf nc TT^'reofpn . . .

. . . .

Material Tower

Freicrht "

PvtTflQ

Totals

Card J.

THE COMPLETE COST-KEEPER. 271

Name

Title

Called Concerning

Business

Sent Catalog No

" Circular No

•• Pamphlet No

•* Sample

CardK.

versation which may have occurred, giving date of the call, with
full name of the individual.

These cards are filed in ordinary filing-cabinets, the same as
those used in public libraries. The particular cabinet shown is
made by ourselves, copied from the "Library d|^Bureau" cabinet.

Card "O" is the previously-given description of forms to be
used by the company. In order that no misunderstanding might
arise, involving discussion as to what was intended by each form,
the author prepared a description of each, showing exactly how it
is to be handled in the work. By this means it is possible to make
any change in the clerical force without embarrassment in carry-

REFERENCE CARD.
Subject

Card L.

2y2

THE COMPLETE COST-KEEPER.

ing out the system, for in case a clerk is in doubt as to the exact
use of any form he has but to refer to this description for full
information. This description also has with it a glossary of terms,
so that the terms used may be readily understood.

Card *'P," key to distribution of vouchers. The purpose of
this key is to permit any subdivisions of the general expense ac-
count which may be desired, at the same time keeping the sub-
divisions private. There are but three copies of this key; these
are placed in the hands of the president, general manager, and
secretary. This key is made expansive, and at present covers the
numbers from i to 232 ; it shows in right-hand column the num-
ber of the page of the ledger, and when the ledger page is
changed, or a new subdivision is decided upon, the key is cor-
rected.

CardM,

Catalogues.

The catalogue is arranged on the system of decimal classifi-
cation, which is a modification of the well-known decimal system
of library cataloguing, whole numbers designating the class to
which an article belongs and decimal fractions designating each
individual part in regular sequence from .01 to .99 and so on with-
out limit. The catalogue, being in numerical sequence, is self-
indexing, so that any piece, as. soon as the number is known, can
be located at once, and its illustration and proper designation im-

THE COMPLETE COST-KEEPER,

273

THE NATIONAL SWITCH AND SIGNAL CO.

Class 3. Signals aod Fittings.

Section 30. Standard Signal Fittings.

Plate 32.

Order No.

♦30.01

Blade grip for square shaft.

♦30.02

Ring only, for blade grip.

3003

Red glass " "

30.04

Green " " "

•30.05

Back light spectacle.

♦30.06

Ring for back light spectacle.

30.07

Blue glass for back light spectacle.

♦30.08

Semaphore shaft.

♦30.09

bearing.

♦30. 10

Lamp bracket.

30.11

Standard lamp.

♦30.12

Up and down rod for i-ann pole.

30.13

.. .. .. 1. .« 2-arm '*

30.14

.. .. .. .. .. 3.arm '•

*30.i5

I. way balance lever stand.

•30.16

2.way

•30.17

3-way

♦30.18

Balance lever.

♦30.19

T Crank balance lever^

•30.90

aolb. counterweight.

30.21

40lb.

Sample Page from Reference " Catalogue "

274

THE COMPLETE COST-KEEPER.

30.01

30.05

30.29

30.18

^ ^

:. i

30.23

30.24

HMHI IM ° °l 1° IIMIol o °l

30.26

30.27

30.28

J ;

Sample page from Reference "Catalogue." Standard Signal Fittings.

THE COMPLETE COST-KEEPER.

275

CLASS 3- SIGNALS AND FITTINGS.
Section 30. Standard Signal Fittings.

Catalog
No.

X30.011

X30.05

X30.08

X30.13

X30.14

Assembling
Combinatior.

X3O.I3 I

Des-
cripti n

5.1

I 30.01

1,454
I W.16
iC-23
I '30. 02
4B-2
6B-39

( '
- I

30.05
30.06
B.I

I 30.08

30.121

N-18

30.41

307

c-21

30.131

N-18

30.41

307

c-21

30.141

N-18

30.41

307

c-21

Descriptton.

Blade Grip

K X 3.^['' stud

%'' special washer

A X ly/^ cotter

Ring

^ X I'''' sq. head bolt & nuts

^ X i>2''' car'ge bolts & nuts

Black Spectacle

Ring

i^ X ^''sq. bead bolts & nuts

1V4 X 15^8 Shaft
%^^ punched washers
^^^ hex. nuts
Vi X lyi^^ cotter

6^ 9K'' Up-and-Down-Rod
hex. nut

screw jaw
H X 1%'' pin
i"^ x I ''cotters

13' 4V2''' Up-and-Dgwn-Rod
W^ hex. nut
?4'' screw jaw
^ X i^'' pin
i\x I ''cotter

19' i^" Up-andDown Rod
II" hex. nut
5i " screw jaw
pin
cotter

Axi''^.

Sample Page from Assembling * Catalogue.*'

27^ THE COMPLETE COST-KEEPER,

mediately found in the pages of the catalogue. The catalogue
number is cast on all castings. In case of additions of pieces
not specified in the catalogue, or of new designs under the generic
number, catalogue additions are made by the extension of the
decimal notation. These additions are kept and recorded on a
private catalogue in the manager's office, and are added to the
commercial catalogue as fast as new editions thereof are made.

The catalogue illuslrations are made in blue and white
in imitation of a blue print. This effect is produced by an etched
zinc-block which is very inexpensive in production, making illus-
trations cost far less than if line-engravings or half-tone repro-
ductions were used.

We have prepared an assembling catalogue, which is sent
only to customers holding annual contracts. The purpose of
the assembling catalogues is to group the several parts of any
device under a single catalogue number, included under the sec-
tion number. As an example of this assembling catalogue in con-
nection with the reference catalogue illustrated hereinbefore, a
reproduction of page 67 is given. It will be noted that by pre-
fixing "x" to the catalogue number 30.01 1, the seven articles are in-
cluded which are used to make up the entire structure designated
by 30.011, and in ordering the complete article, it is only neces-
sary to indicate it by prefixing "x" to 30.011. This assembling
catalogue is used in the works to place shop-orders, and to trans-
late orders received into shop-orders, and insures against the lia-
bility of overlooking some parts, which, while not individually
indicated on the order received should be each separately specified
in the shop-order.

The Pattern Storage-Room is classified to correspond with
the assembling catalogue in class and section, each class being
expansive under the decimal system, and the compartments of
the bins are numbered under the decimal system to correspond
exactly with the catalogue.

An inventory is made once a year from actual count and sur-
vey. A quarterly inventory is made from the stores-ledger and on
this quarterly statements are made up. Results for the last year
show that in comparing the inventory made from the stores-
ledger with the inventory from actual count and survey, the
stores-ledger showed one and a half per cent, less stores, in value,

THE COMPLETE COST-KEEPER. J77

than the actual count and survey showed. In this system, the
stores-ledger should always show a percentage below actual
amounts, for the reason that stores are considered as either in
the rough or completely finished, and when the inventory from
actual count and survey is made, partly finished goods are enume-
rated which are in the shop, and outside of any stores. For
instance, the stores issues from the rough goods one hundred
forgings for handles. These are put through the works, and not
returned to any stores until all are finished. If an inventory from
actual count and survey is made, it may be found that fifty per
cent, or more of these forgings are completed, and of course they
are so counted. Hence the variation between the book inventory
and the actual count.

Instructions to Foremen.

Managers are well aware of the troubles and delays caused
by a lack of full understanding of the work to be performed, and
also frequently by lack of proper provision in the way of portable
tools and appliances to be used in the course of erecting the work.
It also happens in some cases that a sufficient number of parts is
not sent out. All these mistakes, errors, and oversights cause
delay and expense, and are extremely vexatious.

To improve the installation practice so far as possible, the
company has prepared a little book, 4^ inches wide x 6J inches
high, containing forty-eight pages, paged at the bottom, and
printed on the right-hand page only, the left-hand pages being
blank up to the thirty-fifth page, and all the pages from the thirty-
sixth to the forty-seventh blank ; and bound in thin flexible cloth
covers.

This book is, of course, prepared with particular reference
to the installation of the switch and signal plant. In its general
form, aim, and scope, however, it gives suggestions to the mana-
ger of any business, in which installation of product forms an
important part, as to what may be done in the way of facilitating
and expediting installation proceedings by means of a carefully
prepared form of instructions to the foremen of erection gangs.

The full text of this l)ook is here reproduced page by page,
there being sometimes two, sometimes three, and sometimes four,
different particularizations on each page. Blank spaces are left

278 THE COMPLETE COST-KEEPER.

under each particularization for additional written instructions
which may be needed in particular cases. The blank pages at the
back of the book afford a large additional space in which lengthy
special instructions may be fully noted, when needed.

Pages three to fourteen of the book tell the foreman what
he should be supplied with before he commences the installation
of a plant, and pages fifteen to thirty-five inform him regarding
his own personal duties and responsibilities in connection with the
work which he undertakes to perform.

The use of this instruction book has proved of great value in
installation work ; and it seems probable that something of a simi-
lar nature would be found highly advantageous to any concern
employing installation gangs.

In many cases something of less length might prove suffi-
cient, but it must be borne in mind that it is fullness and com-
pleteness which give value to a factory form, and that, in a form
which is to serve the purpose of entire and final instructions in so
important a matter as installation or erection, it is far better to
exceed what might possibly be the narrowest useful limits, than
to fail to include any needed particular.

Each foreman^s instruction book is returned to the superin-
tendent, from whom he received it, upon completion of the in-
stallation. The book is then filed as a part of the records of that
installation. If special instructions are sent to the foreman while
he is on the work, he is required to incorporate them in the book,
either by transcription or interleaving.

INSTRUCTIONS TO FOREMEN.
( Page 3.)
Information to be Furnished Foreman.
I
Plans of Tracks. A complete p''an of tracks showing all switches and
signals to be operated and line of connections to be
run; location of tower, line of right of way, streets,
etc.; location of all detector bars, switch and lock
movements, facing point locks, derails, bolt locks, and
Scotch blocks. This plan will be accompanied by a
locking and dog sheet showing the arrangement of all
locking.

THE COMPLETE COST-KEEPER. 279

2
Tower Plan. A plan of tower showing front and side view with

sectional elevation, leadout foundation, and all dimen-
sions of members marked thereon. This plan will be
accompanied by a complete bill of material.

(Pages.)

3
EsTiVf ATE Sheet. A copy of the estimate sheet showing the quantity

of material estimated in each class.

4
Switch and Lock Plans showing the manner of connecting switches
Connections. by switch and lock movements or facing point locks,
double slip switches, with movable frogs, will be fur-
nished when same are shown on plan.

5
Clearance Dia- Clearance diagram will be furnished showing rela-

GRAM. tion of all structures to track.

7.)
6
Signals and Fit- A plan of bracket pole showing method of assem-
tings. bling and construction.

7
Machine Frame. A detail plan of machine frame.

8
Compensator Where work is complicated, a complete list of com-

and Work List, pensators and bell cranks, showing where same are to
be used, will be furnished.

(Page 9.)

9
Detector Bar A table showing the dimensions of detector bar

Links. links necessary for the various sections of rail.

10
Tools. A complete kit of tools in good order.

II
Small Supplies. A chest containing general small supplies, such as

pins, studs, cotters, glass, etc.

(Page II.)
12
Specipications. Specifications showing the requirements of the rvil-

road company or companies which are to govern the
installation.

13
Permits. All permits necessary for building, digging, etc.

28o

TUB COMPLETE COST-KEEPER.

Statiokkry.

Shipping Lists.

Material to be
Purchased.

Material to be
Furnished by
Railroad.

14
A supply of postal cards and foreman's letter paper
for daily rejwrts ; time books ; time sheets ; blank re-
ceipts ; transfer blanks ; envelopes ;

15
A list of all materials shipped covering signal ma-
terial, tower, tools, etc

(Page 13.)

A list of material to be purchased by foreman.

A complete list of material to be furnished by the
Railroad Company, such as cement ; broken stone ;
ties in place ; derails in place ; tower and leadout
foundations in place; and such other material which
said company is to furnish.

Special A letter of special instructions will be furnished

Instructions. the foreman at the time he commences the installation
of the plant.

(Page 15.)
Instructions to Foremen.

All foremen must comply with the following rules :

19
Foreman's Upon arriving at the point where work is to be in-

Address. stalled, he must go to the nearest telegraph station and

inquire for messages, and report full address where tele-
grams, express matter, freight and letters will reach
him in the most direct manner.
(Page 17.)
20
Report to Foreman will report to and follow instructions of

Compare Plans It is very important that any variation from the

and Tracks. plan of tracks fuurnished foreman, and the existing ar-

rangement of tracks, should be reported at once, and
foreman must go over the work carefully, comparing
each track, etc., with the plan furnished, noting any dif-
ferences or obstacles which will cause any change in
the connections. All necessary grading should be noted,
the condition of ground observed, and a complete report
made as soon as possible after reaching the point where
work is to be installed.

THE COMPLETE COST-KEEPER,

281

22
Tower If tower foundation is to be constructed by Signal

Foundation, Company, he must report any conditions which will re-

quire a plan different from plan furnished.

(Page 19.)

23
Shortage of In order that there may be no delay from shortage

Material. of material from any cause, he 'must [compare estimate

sheet with actual track arrangement, and report any
shortage which in his opinion may occur.

24
Re-Location He must report at once any cause which may re-

OF Signals. quire a different location of signals than shown on plan.

Test As there are frequently various sections of rail used

Rail Clips. in the tracks within the limits of the signals, the foreman

must test the rail clips and links at once, and not wait

until he has to use them, when it may be found that they^

do not fit.

(Page 21.)
26
Tools. The kit of tools sent are mtended to be sufficient to

enable the foreman to work to the best advantage, and it
will be expected that he report any deficiency, and make
clear his requirements. All tools are sent out in good
order, and the foreman IS HELD STRICTLY AC-
COUNTABLE for same. He must see that all tools are
returned to their proper place each day, and hold his
men responsible for the return of same, under penalty
of deducting value of same from their wages. Wnen
work is completed all tools must be accounted for, and

returned to for repairs.

Tools must not be carried from one job to another unlesg
so ordered. It is intended that each foreman shall have
all the necessary tools and materials in good condition
io that good work can be done with speed and economy.

27
Supply Chest. Foremen have been delayed at times by the need of

small supplies. To avoid this a supply chest will be fur-
nished which will contain small fittings, extra gla8s,etc.,
We have frequently found stray pins, bolts, cotters and
washers left carelessly alK)Ut the work. Foremen must
follow up their work carefully, and not permit such
waste as it will be noted and scored against them.

2S2

THE COMPLETE COST-KEEPER.

( Page 23.)
28
Specifications. The foreman will be furnished with specifications
and such extracts from contracts as will be necessary
to enable him to carry out the obligations of the Signal
Company. In no case is he authorized to perform any
work or furnish any material not set forth in the esti-
mate, specifications or contract. The Railroad Com-
pany will be represented by

and should he order any extra work performed, foreman
must request written order, and send same to the Sig-
nal Company, and in case he is ordered to perform such
extra work, he must keep accurate account of time and
material employed.

29
Permits. He will report at once if he has not received the

necessary permits, and advise what additional authority
is required.

(Page 25.)

Shipping Lists. Foreman must check off material with shipping

lists, and must not unload any material without taking
account of it. If for any reason he has not received
shipping list, then he must make list of all articles re-
ceived as unloaded, reporting any shortage at once.

31
Foreman must get bill with all purchases, and after
receiving all material specified in bill, must approve
same, and send with his daily report. He must report
purchase as soon as made, giving amount and name of
firm.

32
He must make daily report of number of men em-
ployed, including himself, and general progress of
work. Weekly time sheets must be sent in, showing
the full name, time and rates of pay, together with the
distribution of labor between tower work, interlocking
and electrical work. He must report rates of pay upon
commencing work.

(Page 27.)

Traveling and No time will be allowed for traveling, except for

Extra Time. the working hours of the day, and no expense will be

allowed in traveling, except car fare. No time must be

put in except for actual work performed, and no time

Foreman's
Purchases.

Daily Report.

THE COMPLETE Cu:^ i-t<.EEPER.

283

must be given for any m?n on account of time lost by
reason of sickness or stormy weather. Sunday work
mast be avoided where possible. No extra rate of pay
or time will be allowed for labor performed 0:1 Sunday
or any legal holiday. The pay-rolls must be signed
promptly and returned. All time for extra work must
be shown on special colored sheet furnished for this
purpose.

34
Stacking or As material is received, it must be carefully stacked

Material. so as to clear all passing trains in accordance with

clearance diagram, and be so arranged as to be acces-
sible, all material of the same class being Fticked to-
gether.

(Page 29.)

35
Disconnecting When it becomes necessary to disconnect any swich

Switches. the railroad company must be notified, in advance, and

the switch firmly spiked for high speed route before it is
disconnected.

Obstructions. Danger signals must be displayed in accordance with

the rules of the railroad company when there is any

obstruction placed ou the track, or if for any reason track

is so disturbed as to make it dangerous for trains to pass.

37
Covering Holes, Foremen must see that all holes which have been

Street dug and which have not been properly filled are covered

Obstructions. at night, and if there are any obstructions at street cross-
ings, a lamp must be displayed.

(Page 31.)
38
Clearance The clearance diagram shows how near any structure

Diagrams. may be placed to rail, and in locating signals, stakes,

foundations, stacking material, etc., this diagrum must
be carefully observed and followed.

39
Cotters. The work is U'l vwi,,j>lcto until all necesnary cottert

are in place properly opened. Foreman must t«)ok after
this work closely, and not invite insitestion until all
cotters are in place.

Locking. Locking mtist be tested ns soon as possible, so that

if any error has been made in combination, it may be
corrected before plant is ready for service.

284

THE COMPLETE COST-KEEPER.

Testing
Machine.

Disposition of
Material.

Plans to be
Returned.

General.

(Page 33.)
41
As soon as foreman has placed locking in machine,
thoroughly tested same, and finds it complete andljf
feet, he must sign dog sheet, and report same, he may
retain dog sheet until work is entirely completed, when
it must be returned with other papers.

42
As the work nears completion, he must report extra
material on hand, and ask for disposition of same.

43
Upon completion of the work, all papers, pians,etc.,
must be returned to the Signal Company.

(Page 35.)

Much delay is frequently occasioned by the railroad
companies in not performing their part of the work.
Foremen must watch this, and report any delay on the
part of railroads.

It is the purpose of the Signal Company to furnish its
foreman with all plans, tools, material, specifications
and assistance necessary to the installation of the work
in the best manner for the least money, and if any fore-
man feels that he is not properly equipped and has not
been furnished sufficient information, it is his duty to
report same.

The work of each foreman is carefully noted, and a
substantial consideration will be awarded to the foreman
showing the best results.

In conclusion there is this to say : Some of the forms here
g^ven can be applied with advantage in the accounting of any
manufacturing business. Others are specially adapted to switch
and signal making, and so are not of general use in the form
shown.

Every form given, however, is designed to meet, and does
meet and satisfy, certain conditions of demand, which find closely
related situations in all factories, and hence each form here repro-
duced, is calculated to assist the manager in devising something
precisely suited to his own requirements.

The general lesson of the whole system is that embodied in
the sentiment of the time-honored maxim, *'A place for everything.

THE COMPLETE COST-KEEPER.

285

Form 138.

CONSTRUCTIO'N MEMORANDUM

Plan No At On

Date

R. R. Officer in Charge. .

R. R.

Information to bk Furnished Fokeuan.

1 Plan of Tracks 17 Mat'l to be furnished by R.R.

2 Tower 18 Special Instructions

3 Estimate Sheet 19 Insurance

4 Switch and F. P. L. Connections

5 Clearance Diagram

6 Signal Poles

7 Machine Frame

8 Compensators and Bell Cranks

9 Detector Bar Link Table

10 Tools . .

11 Supply Chest

12 Specifications.

13 Permits^

14 Stationery

15 Shipping Lists.

16 Material to be-purcha.so.

Material Memorandum.
1

From

20 Interlockine

21 Pipe

22 Wire

23 Signal Poles. .

24 Boxing Lumber.

25 Other Boxing

26 Derails . .

27 Paint

28 Tower

29 Electrical

Ordereil Shipped. Received.

286

THE COMPLETE COST-KEEPER.

TOWER MEMORANDUM.

30 No of Levers Style

31 Foundation to be built by

32 Plans for R. R. Co For Insurance

Size,

33 Painting

Items.

Quantity

Remarks.

Items,

Quant ty

Remarks.

34 Stone

'43 Glass

^S Sand

44 Paint ....

36 Cement

45 Stove

37 Anchor liolts

46 Tools.

38 Lumber

39 Milhvork

' :

40 Hardware

41 Nails

42 Paper

:::::::::

TO BE FURNISHED BY RAILROAD COMPANY.

47 Detail Spf^ci^ications 60 Boxing Lumber

48 Rail Secti' ns 61 Boxing throtgh Streets..

49 Approval of R. R.CoramiSbion . 62 Passes;.

50 Grading 63 Permits

51 Tower 64 Clearance Diagram

52 Tower foundation including leadout timber in place

53 Ties in place 65 Line Wiring

54 Derails m place

55 Cement

56 Sand

57 Stone

58 Signal Poles

59 Foandali )us and Stakes

66 Name of Foreman

Addre.ss

67 Spare Material, Disposition of

63 Tools, Disposition of

69 Tracks ready Tower ready

70 Man to leave in charge of repairs

71 Order received Work Started Put in use. .

72 Completed

I'orm 138. Construction Memorandum. This form may he described as a factory synop-
sis of the constituion and pro-^irss of eacii installation orSer. It is kept at the factory, and is
filled Rradually, forming a memorandum of what is to be done and a current record of what
has been done. This form hns .^hovn it.aelf to be a great convenience, and a great time-saver
also. Size 8>^ ins. wide x 11 ins high. Stiff paper.

THE COMPLETE COST-KEEPER.

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Material Shipped..

Received.

Work Commenced.

*• Completed...

'* Accepted —

Bill Rendered

First Half

Second Half

When Due!!!!!!!!

First Half

Second Half

When 'Paid!!!!.*!!.*

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Second Half

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THE COMPLETE COST-KEEPER,

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Installation Pay Roll.

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THE COMPLETE COST-KEEPER.

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and everything in its
place." First of all,
the place for the thing
must be provided, and
and the place must lit
the thing. After a
suitable place is pro-
vided it becomes a
mere matter of daily-
routine, requiring no
thought and little skill
to fill the places with
the things which fit
them and belong in
them, and this is the
sum and substance of
factory accounting.
Every day brings its
expenditures, its char-
ges and credits. If
these can be recorded
where they should be
recorded, then the fac-
tory accounting is per-
formed.

The shortest and
least laborious meth-
od of making account-
ing entries is by the
use of printed forms
which demand the
least possible pen
work, and at the same
time prevent any de-
tail being forgotten or
overlooked. Hence,
there must be a spec-
ial form to receive
each special division

THE COMPLETE COST-KEEPER. 291

of the accounting. The cardinal point is to have forms enough,
and so avoid all hesitation in placing items and all those uncertain-
ties as to detail of expenses which arise from mixed, combined,
aggregated charges or credits. Everything must be reduced to its
elementary forms if its exact constitution is to be known. When
all the elements of the accounts of a factory are separated and
recorded it then becomes easy to aggregate the items in such a
manner as to give exact information in regard to any detail of the
business, and this may be said to be the final ending, the sum and
substance of factory accounting.

FACTORY ORGANIZATION AND ACCOUNTING.

By James Newton Gunn.

The first and most essential requirement of any system of
factory accounting, is assured accuracy of initial records and re-
ports of actual performance.

Any results that may afterwards be obtained by analysis of
factory records are valuable precisely in proportion to the care
used in determining what facts shall be recorded, and in obtain-
ing the fact-records according to that determination.

The superior economy of one of various systems of factory
accounting depends upon the selection of such means of record as
will actually gather an accurate current record of work, with the
aid of such intelligences as are available, with the most certainty
and least expense.

The facts requiring the most detail so far as -a system of fac-
tory organization is concerned, are those relating to material and
productive labor; but there are other facts of a less obvious de-
scription, such as the variation in the weights of castings from
their theoretical or prescribed weight, the breakage of minor tools
and dies, facts concerning the amount of ashes burned out from a
certain amount of coal consumed, and so on through a long cata-
logue of items, which, however interesting and valuable if the
system is sufficiently perfect, are difficult to secure by the average
manufacturer who wishes to organize a practically accurate sys-
tem which shall give him current knowledge of the obstacles in
his course, and inform him as to the true factors of his direct and
his indirect expense, give the variations in his indirect expense,
and facilitate the analysis of this indirect expense with a view to
its reduction, or to its being made less unprofitable.

In collecting the initial facts concerning either labor or mate-
rial, it must first be determined whether it is practicable to have
the men employed in performinsf the work fill the record cards, or
whether it is more profitable to have them filled by the foreman,
or assistant foreman, or clerks specially employed for the purpose.
For instance, in a steel-mill the nature of the work precludes the

THE COMPLETE COST-KEEPER. 293

possibility of men working upon a train of rolls recording their
own performance beyond the bare fact that they worked a certain
number of hours on another train of rolls, while in a machine-
shop, where a man is working on, say a planer, he has sufficient
time on his hands not only to record his time in detail, but, if it
were necessary, to make side elevations and sections of the pieces
on which he works. And again, a man engaged in laying out
the stock in a cabinet factory doing special work, if he were in-
structed to record the time taken for that operation would prob-
ably spend as much time in making the record, as he would in
selecting the stock for any given order of work. Hence the first
and most important consideration is the physical system which
shall be adopted for recording the fundamental facts concerning
labor and material disbursed.

The first consideration is to see that the plant is properly
divided as to its various departments ; that is to say, that each
foreman has as many men as he can profitably handle and no more,
that no one foreman has charge of two or more classes of work
which are in no way related, and that the disposition of the work
in the building is not such as to preclude the possibility of the
foreman in charge giving to the work the best supervision an<l
direction possible.

Having determined so much, the next step is to obtain a com-
plete statement of all the operations performed throughout the
establishment.

These are then divided into two main classes. First, opera-
tions which are performed so directly upon the work that it is
possible to charge the labor and material expended to a given pro-
duction-order, and Second, those operations which are so general
in their character as to be necessarily treated as indirect expense,
together with the cost of operations which are of the nature of
expenses incidental to the operation and maintenance of the plant,
rather than to any particular class of work.

In the particular plant, which is the example selected for pre-
sentation here, tl^e work is of such a character and the perform-
ances are of such duration, that in the majority of cases the direct
operations are chargeable to soecific production-orders, and in
every case it is possible for the workmen to record their own
time and performances. Where one workman performs several

294 THE COMPLETE COST-KEEPER.

minor operations on a single production-order, these operations
are recorded on his time-card, but he is not required to individual •
ize the actual time spent on each of the minor operations. The
rule which governs in determining whether he shall indicate the
time down to the least operation, or record the time on a group of
operations, is that the time shall be separately recorded for all
operations which could not be performed under one contract if
fhe work were on a piece-work basis. It may be noted here that
prior to the installation of the system taken as an example, no
piece-work was performed in the factory. Under the system
adopted the indirect operations are classified wholly by the results
which are obtained ; thus sweeping belongs to the group of opera-
tions incidental to the care of the plant, while oiling of shafts and
care of belting, pertains to the production and use of power. For
all these indirect operations fixed or standing order-numbers are
provided, and all the indirect work performed is charged to one
or another of these standing order-numbers, unless a specific pro-
duction or plant-order has previously been given therefor.

In order to reduce the mechanical eflfort in the making of the
time-card, specially devised time-cards are prepared for each de-
partment, the margin of the time-card containing the principal
operations performed in that department, so that the record to
be made on the card consists of the date, the workman's number,
the workman's name, quantity and description of the w^ork in
hand, a check-mark or cross opposite the operation performed by
the workman, a check-mark indicating the time the work was
commenced, and another showing the time the work was finished.
The record of the work performed as indicated on these time-
cards is checked at the end of each day by the foreman or sub-
foreman in charge, and the cards are then immediately transferred
to the office of the paymaster.

The same methods are used in securing the original records
of material disbursed in producing an order. The series of forms
shown herewith, w^hich are termed Material Cards, together with
the schedules of machine details show^n, serve to record the entire
history of all material from the time it enters the factory until it
becomes finished product, and has all of its costs properly recorded
upon the cost-cards. These material cards are diflferentiated in
color to unmistakably indicate to the workmen and clerks the dif-

THE COMPLETE COST-KEEPER. 295

ferent classes of records. Thus a white material-received card
is used for recording all material when it enters the factory, no
matter whether this is raw material or parts purchased ready to
assemble into a complete machine. A buff material-delivered card,
shows that material has been transferred from one of the store-
roouis to some department, or from one department to another.
A salmon-colored materials-returned card shows that material is
i-) be credited to the order-number or account which appears
thereon, as the material is returned, either from a department
to the storeroom, or from one department to another department
from whjch it may have been received. A blue material-requisi-
tion card indicates a requisition made by a foreman or a store-
keeper for purchase of material by the purchasing department.

The schedule of machine details records those parts of any
one completed unit of factory product which are carried in stock
in the storeroom ready for use by the assembling department,
each schedule being individually numbered, and a single schedule
representing all the parts necessary to complete a machine of a
certain size and type. Duplicates of each of these schedules are
in possession of each of the following officials: Superintendent,
cost-clerk, stores-ledger clerk, storekeeper, and foreman of as-
sembling department. These schedules enable the foreman of,
for instance, the assembling department, to use a single materials-
delivered card calling for all parts on, say, schedule number seven-
teen, which he sends to the storekeeper, thus saving the writing
and possible errors which would be incidental to the reproduction
in detail of the individual items covered by the entire schedule
every time a machine was to be assembled or two or more were
to be assembled. These material-cards always bear either the pro-
duction-order number, or plant-order number to which they are
related, or if the material is solely chargeable to expense, must
bear the standing-order numl)er which indicates the division of
the expense account for which they are disbursed. It may be
said here that one of the most important precedents to accurate
factory accounting, is absolute uniformity of nomenclature
throughout the factory. Any variation in naming leads to doubt,
and opens the way to inaccurate returns.

The general organization of the particular plant under de-
scription is as follows:

296 THE COMPLETE COST-KEEPER.

The chief of the entire office and factory staff is the Presi-
dent and Treasurer, who is Acting General Manager, and is re-
sponsible only to the Directors of the Company. The next in
authority is the General Factory Manager, who bears the entire
responsibility of production, and who is subordinate to the Presi-
dent alone. The General Factory Manager's staff consists of a
Cost-Clerk, who is also paymaster, and a Purchasing Clerk, who
is also Production-Order Clerk. The Production-Order Clerk
originates production-orders on the factory under requisitions
from the Superintendent.

The general factory manager also has a stores-ledger clerk,
ivho is responsible for all records of material up to the time these
fecords are turned over to the cost-clerk ; a stenographer ; a
superintendent, who supplements the general factory manager in
all his work, but is more especially responsible for the direct
supervision of the foremen. The drawing-room is in charge of
the constructing engineer and chief draughtsman, who has charge
of the subordinate draughtsmen, and undertakes the designing of
new machinery and the remodeling of old, under the immediate
direction of the superintendent. The chief draughtsman is also
responsible for ihe revision of the schedules of machine details
which, of course, must be made to conform to the drawings in his
possession.

Each department has a foreman in charge, who supplies the
workmen with pads of time-cards, and pads of material-order
cards. All stores are kept by a storekeeper who, with one assis-
tant, has in charge all raw material, or rough stores, and also all
semi-finished material or parts, as well as finished parts and ma-
chines. Heavy material, such as rough castings and finished
machines, which from their bulk and the expense attendant upon
handling them, cannot economically go into the storeroom, are
delivered to, and kept in, the part of the factory where they are to
be used ; the nearest foreman is made responsible for their care
and disbursement.

The president has as his executive force, a stenographer, a
filing clerk, a book-keeper, and an order-clerk, who handles the
shipping orders and does the billing, as well as renders general
assistance to the book-keeper. Directly responsible to the presi-
dent is the general manager of the Sales Department, who has a

THE COMPLETE COST-KEEPER. 297

number of salesmen responsible in turn to him. A branch office
which is purely a department of the selling organization is re-
sponsible, in so far as its selling functions go, to the general man-
ager of the sales department, but for its finances, directly
responsible to the President-Treasurer.

A complete shop telephone system gives communication from
the superintendent's office to all the foremen, and to the stores
department.

The only bound book kept is a ledger, which contains the
commercial accounts, and from which the general statement of
the business is made up. This book is simply a general ledger
containing personal accounts and customers accounts. There are
no other books employed in the accounting organization, every
other record being made either on cards or on loose sheets. These
cards and sheets are provided for as to their storage either in card-
cabinets or in binders, or in filing boxes. The same record at
different stages of its work may be in any one of the three forms
of receptacle specified.

Origination of Production-Order.

A production-order originates either from a specific shipping
order, which demands a specific machine, or else from the deple-
tion of the stock of a given machine, or machine detail ; stock-
shortage is immediately reported by the stores-ledger clerk, as he
has a schedule showing the maximum and minimum limits not
only of the parts of machines but of all complete machines. The
schedule limits of stock are assumed at first, and revised as ex-
perience may dictate.

The very size of the concern under description, or rather its
smallness, precludes any necessity for having a formal record of
the instructions that the superintendent gives to the production-
order clerk for the creation of a production-order ; these instruc-
tions are in every case verbal, the superintendent vitalizing the
production-order as soon as made, and assuming the responsibility
by affixing his signature thereto.

Other orders, termed "plant-orders," are issued by the pro-
duction-order clerk. These cover all labor and material expended
for the betterment of the plant, or for experimental purposes ; in
the case of the production-order it is expected that a direct profit

29^!^ THE COMPLETE COST-KEEPER.

will be realized from all work ordered to be performed, while
plant-orders are expected to be indirectly profitable. Both pro-
duction-orders and plant-orders are carbon sheet copies in dupli-
cate, the original going to the foreman, who is to do tlie initial
work, the duplicate remaining at the desk of the production-order
clerk where it is filed by family, that is, by class of machine, and
number of machine, or class of work, until the return of the origi-
nal order with the foreman's signature gives notice that the order
has been filled.

Both production and plant-orders before being sent to the
foreman of the proper production department, go to the chief
draughtsman, who supplements each order with the drawings need-
ed for its production, and the drawings and order then go together
to the department foreman. The foreman on receipt of this order
with its drawings starts the work, making immediate provision
for identification of the work throughout his department, either
by tags showing the production-order number in case of large
pieces, by painting the production-order number on the piece, or,
in case of a large number of small pieces, by adding to the recepta-
cle containing the parts a memorandum-slip bearing the produc-
tion-order number.

The material-delivered card, signed by any foreman, obtains
from the storekeeper the stores needful for the completion of an
order. At any time during the progress of the work, or at its
completion, any excess of material may be returned, recorded on
a "material-returned" card. All these material-delivered and ma-
terial-returned cards, are identified by having the production or
plant-order number upon them.

There is no limitation as to the amount of material which a
foreman may draw for the completion of any one order, but as
often as four times each day it is the duty of the assistant store-
keeper to return all material-cards to the stores-ledger clerk, on
whom the responsibility is placed of seeing that the proper limits
of material required for the completion of any order are not ex-
ceeded.

The Sub-Production-Order.

The sub-production-order is produced in duplicate by mani-
folding by any foreman who may require the product of any other

THE COMPLETE COST-KEEPER. 299

department. The original goes to the department making the re-
quired product, and the duplicate to the office of the suj>erintend-
ent. Both original and duplicate bear the production-order num-
ber under which the foreman using the sub-production-order
number is operating. On the completion of the required details
by the department receiving the sub-production-order, the order
is returned with the work to the originating foreman, who checks
the sub-production-order, certifies its completion, and forwards
it at once to the office of the superintendent.

A plant-order is issued by the superintendent at the request of
any foreman, or as his own judgment may dictate ; plant-orders
cover all work in the nature of repairs or betterments to the plant
or building, all special tools and special experiments, and in fact,
any work to be performed, which will eventually become an addi-
tion to the plant or an expense-charge to the business. These
orders are made in duplicate by manifolding, the original going
to the foreman of the department required to produce the work,
while the duplicate remains in the office of the superintendent,
plant-orders being handled precisely as production-orders are
handled.

There is one case in which it is necessary to make an excep-
tion to the rule requiring all production-orders to be issued by the
superintendent. This occurs in the general machine-shop, where
it sometimes happens that certain machines are left idle. The
foreman of that department is supplied with a pad of production-
orders, and has authority to issue to himself an order for the un-
dertaking of such work as will keep his machines busy, sending
the duplicate order immediately to the office of the superintendent,
on whom rests the responsibility of approving the order, or of
communicating with the foreman and stopping the work, if for
any reason that particular work is not justifiable in the judgment
of the superintendent. In no case, however, is work stopped until
the particular operation in progress is completed.

The production and sub-production-orders, with the plant-
orders, account for all direct labor and material, and a portion of
the expense-labor, but it is necessary that the general factory man-
ager, superintendent, draughting department, the foremen, the
general laborers, and men employed in the production of power,
boat and light, shall have some definite means by which to indi-

300 THE COMPLETE COST-KEEPER.

cate the services which they have rendered to the company. To
this end a communication is addressed to all the heads of depart-
ments, and through them brought to the notice of the employees,
which communication is a standing order under which all em-
ployees of the company are to work. The standing order directs
that whenever workmen perform any. of the operations or render
any of the services enumerated on the list accompanying the order,
the labor-tim^, together with any material that may be drawn from
the stores department necessary to complete the service, shall be
charged to some one of the various numbers set opposite the items
enumerated. These numbers are called standing-order numbers,
and are specific orders, to be treated in the accounting as are the
production or plant-orders.

For convenience and as an aid to all persons concerned in be-
coming familiar with these numbers, the numbers from i to 499
relate to the plant and expenses incidental to production. The
numbers from 500 to 999 specify a general classification of the
product, and relate to such operations upon the product as test-
ing, which operation though it may be performed, as in the case
of a dynamo, upon a specific machine, gives information so gen-
eral in its character as to be of service to the entire class to which
this machine belongs, and therefore is an item of cost which may
more justly be spread over the entire related product, than charg-
ed to the individual machine under test.

The plant-orders commence with i ,000 and continue in nume-
rical sequence, each number being preceded by the letter "P."
Production-orders commence at 1,000 and run in sequence, but
have no distinguishing letter.

The numbers from i to 499 are subdivided into five general
groups defined as follows:

From I to 99, additions to, or ' betterments of, the "perma-
nent investment,^' buildings and plant, too to 199 report depre-
ciations of the permanent investment, and cost of up-keep of
plant. 200 to 299, carry the time-cost of foremen, superinten-
dents, draughtsmen, and all other indirect labor excepting "engi-
neers," American, or "engine drivers," English. 300 to 399 cover
all labor and material used in the generation and distribution of
power, heat, and light. 400 to 499 include all alterations, errors,
and changes; also fixed charges, such as taxes and insurances.

THE COMPLETE COST-KEEPER. 301

Standing Order Numbers.

O Preliminary work on land, grading, filling, drainage,
pile driving, etc.

5 Additions: Buildings, etc.

10 Additions: Fixtures, partitions, benches, and general
equipment.

15 Additions : Power, heat, light, and protective equipment.

20 Additions: Machine-tools, standard.

25 Additions: Machine-tools, special.

30 Additions : Small tools and electrical instruments.

35 Additions: Jigs and dies.

40 Additions : Patterns.

45 Additions : Drawings.

50 Additions: Office fixtures and furniture.

75 Experimental and investment.

Repairs, Depreciation, and Care of Plant.

100 Repairs on land: Grading, draining, piles, etc.

105 Repairs to buildings.

no Repairs to fixtures, partitions, benches, and general
equipment.

115 Repairs on power, heat, light, and productive equip-
ment.

120 Repairs to machine-tools, standard.

125 Repairs to machine-tools, special.

130 Repairs to small tools and electrical instruments.

135 Repairs to jigs and dies (over $40.00).

140 Repairs to patterns.

145 Repairs to drawings.

150 Repairs to office fixtures and furniture.

155 Care of grounds.

160 Sweeping, whitewashing, and cleaning.

165 Tool-room and grinding tools.

170 Setting up machinery.

Moving machinery.

Work and material on side-lines of shafting.

175 Cleaning and care of machinery.

180 Collecting and sorting scrap.

185 Watchman.

302 THE COMPLETE COST-KEEPER.

Supervision of Indirect Labor and Material.

200 Private number (superintendent).

205 Engineers, electrical and mechanical.

210 Foremen.

215 Inspectors.

220 Factory office, clerical.

225 Factory, clerical.

226 Factory, inventory.

230 Laborers not chargeable elsewhere.

235 Over-time.

240 Experimental.

245 Extra testing

246 Field-coil testing.

250 Draughting department supplies.

255 Pattern department supplies.

260 Blacksmith department supplies.

265 Factory supplies, general, including files and small
drills.

275 Receiving department.

277 Trucking and freight handling.

280 Stores department.

285 Shipping department.

287 Packing and boxing,

300 Engineers.

305 Firemen.

310 Care of engines.

315 Care of motors and generators.

320 Care of main shafting, pulleys, and belts.

325 Care of boilers.

350 Building, renewals.

355 Fuel.

356 Fuel handling.
360 Oil for gas.

365 Oil and waste for generators and engines.

370 Incandescent lamps and fixtures, wire, etc.

400 Draughting expenses for sales department.

410 Errors, extra costs.

41 1 Restoring "returned goods" to good condition for
stock.

THE COMPLETE COST-KEEPER. 303

415 Changes on orders for special pulleys, and other
changes.

420 Expenses for road repairs not chargeable to customer.

450 Office supplies, stationery, etc.

451 Cost-department supplies.

455 Express not charged on material or shipments.

457 Freight not charged elsewhere.

460 (Private number) salaries, officers.

465 (Private number) salaries, office.

470 Advertising, printed matter.

475 Salaries, salesmen.

480 Salesmen's travelling expenses.

Standing-Order Numbers Production.

500 Material incidental to winding department production.

505

510 Mica splitting.

511 Micanite.

512 Cloth cutting.

513 Clips, cutting, to go under binding wire.

514 Bobbins, winding, including cotton.

515

520 Scrap.

525 Other indirect material (printed instruments, etc.).

530

535

540

545

550 Shaft ffati^es.

By the use of the foregoing system every item of labor per-
formed throughout the entire plant from that of the general fac-
tory manapfer down, and all material disbursed, is accounted for
by being charged either to a standing order, production-order,
sub-production-order, or plant-order number. Without regard
to the intermediate records necessary for securing the informa-
tion, all the foregoing orders are recorded as to their costs, either
on a production cost-card, a plant cost-card, or a standing order
cost-sheet ; the production and plant cost -cards are complete when
the specific order which creates them is complete; the standing

304 THE COMPLETE COST-KEEPER.

order cost-sheet is perpetual until all its space is filled in, just as
the standing order is perpetual.

Other records known as "Department Cost-Sheets" are creat-
ed, which show the relation of the direct expenditures to the in-
direct expenditures of each department. This sheet is not a part
of the general system of accounting in the sense that every other
record is a part of it, as the continuance or discontinuance of this
sheet would in no way affect the complete accounting of the fac-
tory, but this department cost-sheet is of great value to the gen-
eral factory manager, because of the manner in which it presents
the statistics of the entire plant, and of the separate departments
as different members of the one producing unit. See pp. 336-340.

The material requisition-card previously referred to is a no-
tice from the storekeeper to the purchasing agent, informing him
of the depletion of any article, the storekeeper sending his requi-
sition to the stores-ledger clerk, who first checks it to be sure that
this purchase will not increase the quantity of goods on hand be-
yond the established maximum, and then, after approval by the
superintendent, forwards the material-requisition to the purchas-
ing agent, who makes a manifold order, sending the original order
to the party from whom he would purchase, and filing the dupli-
cate in a card-index tray, in alphabetical order under the name of
the vendor. The requisition is indorsed with the purchase-date
and order-number, and returned to the stores-ledger clerk. The
stores-ledger clerk has a ledger arranged in groups and sub-
groups, showing the quantities of all stores on hand. This ledger
consists of a series of cards stored in a card-cabinet, the cards
which record related material being placed together, that is to say,
all grey iron-castings records are placed in one group, all bronze
castings in another group, and so on. General supplies, such as
wire cloth, mica, and other insulating material are grouped together,
and the group items are arranged alphabetically by the names of
the articles. Taking a specific article of any group, the rough
casting or material disbursed in producing the piece appears on
the first card, the same piece-number being given to the article
in its next stage of production on the second card in the file-group
bearing that number, while completely finished machines are re-
corded on the last card of the group. Each card bears in its upper
right-hand corner the minimum and maximum limitations as to
auantitv to be carried in stock.

THE COMPLETE COST-KEEPER. 305

When the material-requisition is returned to the stores-led-
ger clerk from the purchasing agent, it is filed immediately be-
hind the previously filed cards containing the record of this par-
ticular article, so that without making a single mark the stores-
ledger clerk records in his card-ledger what goods have been
ordered, when they were ordered, when they are expected to be
received, of whom they were ordered, and the purchase order-
number on which they were ordered.

When the storekeeper receives from a foreman a material-
delivered card, which is a requisition on the storekeeper for cer-
tain articles, if he should not have these articles in hand, he passes
this material-delivered card to the stores-ledger clerk, who enters
on his stores-ledger card in the delivered column, in pencil, the
quantity called for. and returns the material-delivered card imme-
diately to the storekeeper, having indorsed across the face of the
card the word * 'noted." Thus the stores-ledger is made to show
all demands, and also the record of what measures have been
taken to meet those demands, and so prevents a depletion of the
stores without warning.

The production-orders are filed at the desk of the order-
clerk in ''family" groups, that is to say, all orders for similar
articles or related parts are grouped together, as it is frequently
the case with the larger parts that a number of orders for the
same part in varying sizes will be in the factory at one time. All
production-orders are issued to each department separately, hence
if an article requires the work of several departments for its com-
pletion, two or more production-orders are issued, and duly re-
corded in the file of the production-order clerk, which may be
consulted for any information in regard to any orders in the fac-
tory for articles of the given kind, and contains the full record of
the current orders for finished stores in progress, hence it is al-
ways possible, by simply consulting the record of the stores-led-
ger, to determine how soon any number of machines of a given
kind can be delivered.

Here the mere order of filing or arrangement of the cards se-
cures results which, under a book system, could be obtained only
by the establishment of several separate records ; and in general
terms it may be said that the facility with which cards bearing re-
lated records can be placed in immediate juxtaposition, and in

3o6 THE COMPLETE COST-KEEPER.

true sequence, gives the card a great advantage as a factory re-
cord over any form of records kept in bound books, however
ingeniously the book forms may be devised.

A mechanical time recorder is used to record the time of arri-
val and departure of the foremen and all under them. The time-
recorder sheets when delivered to the office of the cost-clerk, who
is also paymaster, are checked against the time-cards returned, to
see that there is perfect accord in records. Any disagreements are
referred to the foreman in charge, or if the error is one that will
affect the foreman, referred to the general factory manager for
investigation and settlement. As a matter of fact, a disagreement
in the records very rarely occurs, and when it does happen it is
generally found to result from an error on the part of one of the
men, most often a laborer, in recording some expense operation.
The accuracy of the records on the time-card being assured when
the cards are received from the departments, they need merely be
arranged in sequence by workmen's numbers to make them ready
for entry on one pay-roll if time-cards, or, if piece-work cards, for
extension on other pay-roll. In case of piece-work both the time
and the amount are entered. As the cards are computed at the
various time-rates, the value of the labor on each card is noted
thereon, and the cards are then sorted to the respective order-
numbers against which they are charged.

Analysis or "distribution" sheets are provided as shown in the
accompanying forms ; these sheets bear the order-numbers in se-
quence, each sheet providing for records of both material and la-
bor, and one set of sheets covering the expenditures of labor and
material for one week. The time-card totals, after the cards are
sorted by order-number, are entered on these distribution-sheets,
only the hours and value expended on each order being noted.
Where two or more cards are written against the same order-num-
ber within the same day, the additions are made by the cost-clerk
mentally, and a single combined entry is made on the distribution-
sheet. At the end of the week when all the time-cards are entered
and the totals charged to all the order-numbers, the sum of these
totals is taken and proved against the pay-roll total, to show that
the entire amount of money spent for labor that week has been
properly accounted for under the various order-number charees.
The material-cards are treated in the same way as to their

THE COMPLETE COST-KEEPER. 307

sorting for entry on these analysis-sheets: as they come from
the storekeeper to the stores-ledger clerk they are first entered
in the stores-ledger for quantities ; they are then sorted to order-
numbers and entered on the analysis-sheets under the various or-
der-numbers, so that at the end of the week the total amounts of
material disbursed to any one order are shown. The gross foot-
ings of these totals show the aggregate material disbursed in the
plant during each week, and this footing aflfects the permanent in-
ventory as a deduction therefrom, as will be explained later in
the section bearing on the inventory.

Accuracy of the Storeroom Record.

The method pursued by the stores-ledger clerk to insure the
accuracy of the stores-ledger, is to prove its correctness by send-
ing to the storekeeper the names of several articles under his
charge, with the request for an actual count and memorandum of
each. The storekeeper has no previous information as what is
to be counted, and in the course of thirty to sixty days every arti-
cle is counted and checked with the storeroom record at least
once, thus sufficiently proving the general accuracy of the stores-
record. This practice naturally results in making the storekeeper
careful, and prevents the stores-ledger from becoming merely a
routine record of no real use or accuracy, as it might easily become
if not often verified.

The permanent inventory is merely a record of the current
value of all stores, as the balances on the cost-cards show the
current quantity of all stores and all orders in process of pro-
duction. The permanent inventory, therefore, is the equivalent
in value of the material which is recorded in the stores-ledger, the
stores-ledger being divided into several large groups like the
following: Iron castings, unfinished iron castings, partly finished
bronze castings, purchased parts in store, factory supplies, obso-
lete stores and parts, finished machines, and finished machines ob-
solete, each of these groups being represented by a sheet of the
T|?nnanent inventory, the balance on which represents the value
of the balances on the stores-ledger. Once every sixty days the
stores-ledger clerk is required to extend the balances on all his
ledger-cards at the prices of the last balances as shown on the
cards, and the sum total so obtained of the value balances on all

3o8 THE COMPLETE COST-KEEPER.

the cards in a group should equal the corresponding balances on
the sheet in the permanent inventory. The variation between
these two totals will define the discrepancy existing in this mate-
rial-calculation. The variation is always trifling, and is suffi-
ciently explained by the results being so different, when the mate-
rial is computed in small items, from the totals obtained with
large items and amounts. The variation, wherever it is, is balanced
by changes in the permanent inventory record, since the stores-
ledger balance manifestly is the less liable to inaccuracy. The
sum of all the permanent inventory sheets at any time should show
the same amount as that which appears in the general ledger of
the company, under the account heading of "stores."

A finished-production record is arranged on piece-work cards
like the exhibit given, on which the history of the cost of every
operation is shown. To make this record the cards are arranged
in large groups by departments, and sub-arranged by operations
in their working order in that department, all the cards of a given
operation being arranged in series by machine-number, or part-
number, or name, together. The day-rate time-cards, after entry
on the analysis-sheets, are again sorted to departments, and ar-
rangd by operations, and sub-arranged by machine-number, or
part-number, or name, exactly as the piece-work record-cards
are arranged. It thus becomes possible, when an accumulation of
the time-cards is obtained, to make tabulations of these in con-
densed form on this piece-work record-card, and these piece-work
record-cards exhibit the facts warranting alteration of the piece-
rates, and also are used to record such rate-alterations, when
made.

Since the time-cards returned for piece-work come in by de-
partments and are immediately arranged by workman's numbers,
they may be priced readily from this piece-work record, as both
sets of cards will be found in the same order almost without varia-
tion. As a general rule, workmen should be assigned numbers
indicating the departments in which they work and the operations
which they perform. Of course it is understood that this cannot
be an invariable practice, but the workman's number can be made
to give a fairly accurate indication of the operation performed
if care is taken that the pay-roll is arrang^ed so as to have the
workmen appear on it in their operative order throughout the fac-

THE COMPLETE COST-KEEPER. 309

tory. An alphabetical record of workmen is kept on cards like
that shown in the form. This record is filed in two sections, one
section representing the workmen now employed by the company,
the other section those previously employed by the company. As
the cards give the full factory history of each workman, they are
likely to be of future value, besides being of current value to the
paymaster as a reference in case he is not certain as to the rate at
which a workman is employed.

A record of workmen on cards like that shown in the form,
also enables a comparison to be made of their earnings on a time-
basis and on piece-work. This enables the superintendent and
the cost-keeper to observe the varying results of different methods
of recompensing work, as well as to make comparisons of the effi-
ciency of different workmen on the same job. These cards may
be arranged alphabetically by workmen's names, but belLer by
departments, with a sub-arrangement by workmen's numbers.

Each week the totals of material and labor appearing on the
analysis-sheet are transferred to their respective production, plant,
or standing order cost-card, so that the cost-card receives in one
item the amount expended upon either. Orders that are com-
pleted during the week have their balance of material or labor
charged to them. The cost-card, as shown, provides for an entry
at the top. showing the amount of labor and material expended
on the last production of the same article, or on the production
which showed the lowest cost. As the material and labor charges
come to this card a comparison is made easy, so that any failure to
report material expended, or any over expenditure of material or
labor is immediately noted. After the cost-cards are completed
they are filed in classes, that is. all cards showing cost on similar
order-numbers or similar machines, together; consequently com-
parative costs are easily obtained and discrepancies in successive
costs of the same order are made apparent.

The Record of Plant.

The economic record of all machine-tools is kept on cards,
shown in the form herewith, and each of these machine-tools has
another card of specific record, which exhibits its original cost and
gives its complete history, together with its repairs, depreciation,
and original value. These cards arc classified first by departments,

310 THE COMPLETE COST-KEEPER.

then locally in the department, all like machines or tools being
grouped together. Since all items recorded as to their costs on
the plant-cost cards are either betterments or expenses, these
charges fall under one of the standing order numbers ; after hav-
ing their totals carried to the standing order cost-sheet, these
standing order charges are resorted to departments and posted to
these record or plant-cards, so that they show not only the original
cost, but, in the form of a running account, the cost of repairs on
every machine, tool, or die used. An individual card is given to
every machine or tool down to a value of $40.00. Below that
valuation, charges are made to groups of related tools, one card
representing each group. For instance, such a group might be
files on hand, represented by balance June i, showing forty-eight
and two-third dozen in use, value $92.00. The best practice for
obtaining depreciation and up-keep in hand-tools, is to charge off
all additions and replacements immediately as expense, letting the
value on the books stand the same from one year's end to another,
until some marked increase or decrease of the particular invest-
ment is made. These cards, each card showing the value of a
group from year to year, need be changed or corrected only by an
annual inventory.

Shipping orders are made out in duplicate by the order-clerk
on receipt of a communication from the customer, or the general
sales manager. The original is filed at the order-clerk's desk in
a tray, alphabetically, until goods are shipped, the duplicate going
directly to the superintendent to advise him as to current demands
upon the product. The superintendent sends the shipping order
to the shipping clerk, who makes the shipment and forwards the
order to the cost department to have the cost entered upon it.
The shipping order is then returned to the order-clerk, who in-
dorses on the original the date of shipment, and files the duplicate
alphabetically by the purchaser's name in a card-index cabinet, so
that all the orders from any one customer are brought together.
The original shipping order goes from the order-clerk to the as-
sistant bookkeeper, who prices it, that is, puts the selling price
on it, unless this has been previously determined by the general
sales manager. The order is then billed and goes through the
regular routine of the accounting department. The original order
becomes a page in the sales-book, produced by assembling these
sheets in a binder.

THE COMPLETE COST-KEEPER. 311

If a shipping order calls for a machine or part which cannot
be shipped immediately, the superintendent turns this shipping
order over to the production-order clerk, who makes a produc-
tion-order therefor, sending it into the factory through the
draughting department, as explained previously, indorsing upon
the production-order and upon the shipping order the date at
which shipment is promised, and if this date of shipment cannot
be made to agree with the purchaser's demand as it came to him.
the production-order clerk sends to the shipping clerk an advice-
slip giving the revised date.

Officials.

President and Treasurer. Duties, the general conduct of the
business ; the formulation of its policy and the managing of the
sales department, as well as the directing of the administration ot
the financial affairs of the concern.

The Secretary, who, under the supervision of the president,
conducts the general correspondence of the business.

A General Factory Manager, who is an engineer, and abso-
lutely controls the production, and determines all new desig^is.

A Superintendent, who performs all the duties ordinarily per-
taining to this office, being directly responsible to the general fac-
tory manager.

Constructing Engineer and Chief Draughtsman.

Purchasing Agent and Production-Order Clerk.

Cost-Clerk and Paymaster.

Stores-Ledger Clerk.

Storekeeper, and Boy Assistant.

Shipping Clerk.

Filing Gerk.

Foreman of Construction.

Foreman of Assembling.

Under Foreman.

Bound Account Books Used.

A General Ledger. This book has no connection whatever
with the cost-keeping.

312 THE COMPLETE COST-KEEPER.

Organization of the Storeroom.

ihe storeroom is provided with shelving, bins, boxes, and
vertical stalls for steel, iron, and copper, in bars and sheets.

The freight elevator, operating between the basement and the
upper floors, passes through one corner of the storeroom. There
are two windows and two gates, one at each end of the storeroom.

The stores-ledger, consisting of cards filed in a cabinet, is
kept in the counting-room on the theory that if the storekeeper
wants to know what is in his room he should look in the proper
place in his own department and find it, while the counting-room
needs the stores-ledger at hand to answer questions which are
constantly arising.

The Use of Punches by Officials.

Punches are used by all officials and foremen in place of
written signatures, to indicate approval of cards in hand, or re-
ceipt of stores, or for any other purpose commonly served by a
written signature.

Description of Card Forms.

Card form A. Tool Card. This card bears the name of the
tool and the tool-number, the cards being filed in numerical se-
quence an accession taking the next number following that of the
last card. No tools appear on this record except those properly
classified as machine-tools, or factory machinery, including en-
gines, boilers, pumps, and also dies and arbors, valued at $40.00
and upward each. These cards are kept in the cost-department,
and are originally filled from the receivers' card, which gives first
notice of the receipt of any tool.

Card form B. Valuation Record of Tools. These cards are
filled and kept in the cost-department, being filled at the same time
as Card A, and supplemented from time to time by further infor-
mation as received. The cards are arranged in order of factory
departments, the cards belonging to each department being arrang-
ed by kind or class of tool, all the cards referring to tools of the
same class being arranged in numerical sequence. The face of
this card contains a full description and history of the tool with
its initial cost, also its various locations in the factory, if it ha*

THE COMPLETE COST-KEEPER. 313

Namr.

No.

* .

Card Form A. Tool-Card. Size 5 ins. x 3 ins. White.

Date.

Value.

Repairs.

Total.

Date.

Depr'n.

Bal.

. .

••

Card Form B. Valaation Record of Tools, s ins. x 3 ins. White.

314 THE COMPLETE COST-KEEPER.

been moved, its estimated life, and rate of depreciation. The back
of the card contains the financial history of the tool, commencing
with its first cost and afterwards recording all additional expendi-
tures which could properly be classified in the first column under
value; in other words, in this first column records of permanent
investment only are entered. In the second column, headed ''re-
pairs," cost of installation and current repairs are recorded. The
third column gives the total of the first two columns. At the right,
in the ''depreciation" column, the amounts charged off annually,
as well as the sale of the tool, if this is ever made, are recorded.
The column at the extreme right, headed '"balance," shows the
present value of the tool, after all deductions are made. If a
tool is sold and the balance column shows a remaining unliquid-
ated indebtedness this is charged to profit and loss, and credited
to the proper permanent investment account.

The least final value of any machine-tool may be assumed to
be twenty per cent, of its original cost. The economic termination
of the life of a machine-tool is reached when the tool becomes obso-
lete. A tool becomes obsolete when there are newer and improved
tools of the same class which can do the work in less time. A
tool may be kept up to its original efficiency and perfection of
output, and yet be uneconomical in performance, because other
tools can be obtained in the open market which much exceed its
production. Exactly what the percentage of excess-production of
the improved tool must be to render the old tool obsolete, must
be determined by circumstance and comparison. Sometimes a
gain of as little as three per cent, in production renders a change
imperative, and in all cases it may be assumed that a ten per cent,
increase in production demands removal and replacement.

In the foregoing no attempt is made to discuss the theory
of depreciation, as such a discussion would be of such length as
to place it beyond the limits of this present article.

Card C. Purchasing Agent's Quotation Record. These cards
are made by the purchasing agent as soon as he receives a quota-
tion on any article, and they are kept at his desk, being filed alpha-
betically by names of. the articles appearing on the upper line of
the cards. The cards show the dates of all quotations whether the
quotations were made by letter, telephone, or salesman, by whom
the quotation is made, the number or size of the article, the list-

THE COMPLETE COST-KEEPER.

315

ARTICLE.

Date.

No. or
Sire.

List. Unit

Net.

DIsct

Cat.

Box. No

....

Card Form C. Purchasing Agent's Quotation Record. 6 ins. x 4 ins. Buff.

price or net price, the unit on which the price is based, that is,
hundreds, dozens, pounds, and so on, the discount, and at the
extreme right the index-reference, indicating the file where the
catalogue or price-list will be found which relates to this article.

Card D. Address Card. This card is made by the purchas-
ing agent whenever he receives the address of a new possible
source of supply, and filed in the same cabinet with Card C, being
arranged alphabetically by the name of the seller appearing on the
upper line of the card. Below the red line may appear a memo-
randum of articles purchased from the individual or firm named.

Card E. Production-Order. This is made by the order-
clerk on the authority of the general factory manager whenever
it is desired to issue a production-order to the factory. It is
made in duplicate by carbon process, the original or thin card
being sent to the foreman of the drafting department, where, if
necessary, special sketches will be made and all other need* -l
technical matter furnished, which then goes with the production-
order to the foreman of the department which is to perform the
work. The foreman or sub- foreman in charge of the work keeps

3i6 THE COMPLETE COST-KEEPER.

Card Form D. Address Card. 6 ins. x 4 ins. Yellow.

these cards in a little card-file, specially designed to contain the
maximum number of cards which he would have in his department
at any one time. On the completion of the work the date of com-
pletion is noted in the space provided, and the production-order
is immediately returned to the order-clerk, who can supplement
his duplicate of the order with the date of completion, and the
order is then filed in numerical sequence in a card-cabinet in the
cost-department. To go back a moment, when the order is made
the duplicate is retained by the order-clerk, leaving his desk for
only a few minutes in order that the cost-card may be made from
it by the cost-department; it is then returned to the order-clerk
and by him filed by class alphabetically, so that all the orders for
a given class of parts or machines shall be brought together; it
is held at his desk until the original order is returned, and when
supplemented by the date of completion is filed alphabetically by
class in the card-cabinet provided.

Card F. Sub-Production-Order. This is made in carbon
duplicate by the foreman of any department, when, in pursuance
of instructions received on a production-order, it becomes neces-
sary for him to require work from any other department. The.

THE CO MP Vet E COST-KEEPER.

317

Production Order To Department Approved Date of Order

D
No. Foreman

Please execute the following order, charging all labor and material
expended to the above number and return this order on completion to
the Superintendent's office. Date completed

To be completed by date below.

Approved

Superintendent.

Card Form E. Production-Order. Thick and thin cards in dupli-
cate. 6 ins. X 4 ins. Yellow.

sub-producl ion-order is given the number of the production-order
under which it is issued, the original being sent to the foreman of
the department which is to perform the work, who, on completion
of the work, returns the order with the work to the foreman by
whom th sub-production-order was issued. The latter immedi-
ately returns this completed order to the office of the superintend-
ent, where it goes into the hands of the order-clerk, who treats it
in precisely the same manner as he treats production-orders. The
carbon copy of the production-order, as soon as made by the fore-
man, is sent to the office of the order-clerk, who files it immdiately
behind the production-order under which it is issued, and there
retains it until the original of the sub-production-order is returned
to him, when it is filed in the same manner as the production-
order is filed.

Card G. Plant-Orders. These are made by the order-clerk
at the instance of a foreman or the superintendent, but on the
authority of the superintendent only. On these plant-order forms
all orders are given for repairs or betterments, or any work that
is not directly production-labor. Some minor repairs may be

3i8

THE COMPLETE COST-KEEPER.

Plant Order No.
Pi 997

For Department

Date of Order

To.

Date of Completion.

Please execute the following order and charge all labor on "Service
Card " and all material on " Material Delivered Card" to above num-
ber. Return this card to me when this work is completed.

Superintendent

Plant and Betterment Order.

Date.

Material

Value.

Date.

Labor.

Hours

Valut*.

Total Labor

— '

Total Material

Indirect exp. @.

—

AfifCfrecrate Cost... .1

Card Form G. Thick and thin, thick card printed on both sides. Plant-
Order. Size 6 ins. x 4 ins. White.

THE COMPLETE COST-KEEPER. 319

made without the use of this order, but these are comprehended
in the standing order system. The original plant-order is sent
to the foreman of the department in which the work is to be per-
formed, and handled precisely the same as the production-order;
the duplicate instead of being retained by the order-clerk, is sent
at once to the cost-department where it is filed by order-number,
and the face as shown becomes the cost-card. When the work is
completed the duplicate is filed in numerical series under the
standing order number which indicates the classification of the
expense.

Time-Cards, Hi, H2, H3, H4, and H5. These are made
by the workmen as they perform various kinds of work through-
out each day. In the majority of cases one man will have either
one or two cards. In some exceptional cases one workman's cards
will count up to ten or twelve. In this particular factory, 150 men
in work and returning time-cards daily, average a daily aggre-
gate of about 235 cards. The cards returned from any man must
give the same number of hours as his record on the time-clock
sheets. The cards are handed to the foreman each day, and he
returns them to the paymaster the following morning. The cards
show the number of the workman, his name, the quantity and de-
scription of the work on which he was employed, the time of work
on each order, and the order number on which he works, as under
the order system in use a number is given for everything to be
done, either a production, plant, or standing order-number. Every
card must bear an order-number. The workman checks the opera-
tion on which he is engaged, or if the name of the operation is not
printed in the margin of the card, as sometimes, though rarely,
occurs, it is written in the space provided.

Card Hi. This card is used exclusively in machine-depart-
ment one; H2, belongs in machine-department number two; H3,
in the winding department ; H4. in the assembling department :
H5, in the power, heat, light, and drafting department, and is also
used by all workmen engaged in general work which is not directly
productive. The cards are punched in the lower left-hand comer
spaces to show whether the work was time-work or piece-work.
This punching is done when the cards are made, and the workman
takes an hour-rate or piece-rate card as may be demanded by the
conditions of his employment. His time is recorded by checking

^20

THE COMPLETE COST-KEEPER.

Man No.

I. Machine Department r~|
Approved foreman

Date

Workman's name

Order No.

Chipping etc.

Blacksmithing

Planing

Boring

Quantity

Description of work done

Drilling

Tapping

Turning

Milling

Splining

Operation performed

I I

>
>

i
1~

8 y^

2 K

—

K
K

—

Pi€
C

see
)

ourj

Rate

Value

Ser-
vice
card

Man No.

No. I Machine Dept. I I
Approved foreman

Date

Workingman's name

Order No.

Quantity

Description of work done

Operation performed

Planing

Fitting

Blacksm.

Boring

Seating

Drilling

Babitting

Tapping

Punching

Turning

Arb. Assem.

Milling

Core

Splining

Painting

Chipping

Grinding

Filing

Tinning

H\ 1 3

Time Piece

Hours Rate

Value

Card Form H. i. Machine Shop Workman's Time Card. 5 ins. x 3 ins.
Light stone color.

THE COMPLETE COST-KEEPER.

321

Sub-Production Order To department Approved
No. □

Foreman

Date of Order

Please execute the following order, returning the order with the
work to the foreman as below who will return this order to the office
of the superintendent.

Date completed.

To be completed by date as below

Approved

Foreman.

Sub-production order, in duplicate, thick and thin cards. 6 ins. x 4

ins. Blue.

Man No.

Mach.

Dept

•D

Date

Turning

Chipping

Approved foreman

Boring

Filing

Workman's name

Order No*.

Milling

Fitting

Drilling

Quantity

Description of work done

Tapping

Splining

Grinding

Assem. Strips

•• Comm.

Operation performed

Guage Mica

—

9
3

—

Time
0

Piece

Hours

Rate

Service

Value

Card Form H.3. Workman's Time-Card. 5 inches by 3 inches.
Light Stone color.

322

THE COMPLETE COST-KEEPER.

Man No.

Winding Depart

ment

Date

1 Spool Making

1 — 1
Approved foreman

Insulation

Workman's name

Order No.

Winding

Taping

Quantity

Description of Work Done.

1 Arm Assemb'g

1 Cross Connect'g

Banding

Soldering

1 Finishing

Operation performed

%
%

—

8
2

X
%

l9
3

—

y^
%

— -

—

%
%

- —

—

.'A

—

Time Piece Hours. Rate

o o

Value

Service
Card

Card Form H. 3. Workman's Time-Card. 5 ins. X3 ins. Grey Blue

Man.

Assembling Department

Date

Field Coil Test'g

Approved foreman

1 " " finish'g

Workman's name

Order No.

Painting

Assembling

Quantity

Description of work done

Testing

Finishing

1 Making boxes

Boxing

Dis-assembling

Operation performed

Re-assembling

—

Time

Piece
0

Hours. Rate Value
Ser-
vice
Card

Card Form, H. 4. Workman's Time-Card; 5 ins. X3ins.; Salmon color.

THE COMPLETE COST-KEEPER.

323

Man

No.

General

Date

1 Sweeping

Approved foreman

1 Collecting Scrap

Workman's name

Order

No.

1 Power Heat & Light

Quantity

Description of work done

1 Stores Dept.

1 Draught'g Dept.

1 Shipping Dept.

Operation performed

_l>6

—

■9i

10
4

II
5

—

Time
0

Piece

Hours

. Rate

Value

Ser-
vice
Card

Card Form H 5. Workman's Time-Card. sins, x 3 ins. Faint Lavender

color.

on the card the hour of beginning work, and the hour of finishing ;
this relieves the workman of the necessity of making time-calcula-
tions. The time, as will be seen, may be indicated down to the
quarter-hour, this being considered a sufficiently small division,
and it is believed that a smaller time-division would involve more
work than the results would warrant. The cards are punched to
the nearest quarter-hour, making the greatest possible error, seven
and one-half minutes.*

Since the cards are returned to the paymaster from each de-
partment separately, and since all of each workman's cards are
together, the time-total of each man's cards may be readily checked
against the time-clock sheet to prove the accuracy of the time-
record made by the workman. The cards are then taken by the
paymaster, who prices them with rates, either time or piece-work,
and makes the cash-value extensions, which are next entered in
the pay-roll. The cards are then gathered in order-number
bunches, and passed to the cost-clerk. After his tabulations have
been made, as described elsewhere, the cards are sorted by depart-

♦ Some large concerns use five-minute time card divisions. — Compiler.

324

THE COMPLETE COST-KEEPER.

ments to operations, all the cards bunched under a given operation
being sub-arranged by class work ; for example, all the cards for
planing frames of a given size, together, and so on for other ope-
rations and other parts. The cards then remain in the cabinet
provided until enough cards have accumulated to warrant a tabu-
lation of the costs of individual operations on the piece-work cost-
cards, as explained elsewhere. The time-cards may then be de-
stroyed, or preserved in cheaper cabinets if desired.

Card I. The Workman's Record-Cards. These cards are
made by the paymaster and retained by him, filed in alphabetical
order in a small cabinet, an individual card being made for each
workman as soon as he enters the employ of the company. These
workman's record cards are arranged in two series, the first giving
the names of all the men who have ever been in the employ of the
company, while the second series records the names of those who
have left the employ of the company. This is useful for reference
in employing new men, and when men reapply for appointment ;
also for the paymaster in fixing rates on the time-cards, and for
the superintendent, as giving for reference a complete history of
every man.

Name

Residence
No.

Age

Date employed

Dept.- of operation

Rate per d'y

Date transferred

Date emp. ceased

Cause

Left-Discharged-Suspended.

Card Form I. Workman's Record Card. 5 inches by 3 inches.
White. Double ruling in red

THE COMPLETE COST-KEEPER.

325

Card J. Piece-Work Cost-Card. This is made by the cost-
clerk from the time-cards as they accumulate, and are filed by ope-
rations, as previously described. These cards are filed alphabeti-
cally by class, or part, or machine, or description of work, and
each division is sub-arranged in minor divisions by size, or kind
of work in its class. None of these cards is posted less frequently
than once in four weeks, and the majority of them once in two
^veeks. The piece-work cost-card shows the operation, the opera-
tion-number for each operation performed in a given department,
the order-number, the operation-number of the part, or the ma-
chine-number of the machine on which the work was performed,
with an amply identifying description of the part of machine or
work under construction. The body of the card gives the date
terminating the period during which the work recorded in the
tabulation was done, the number of hours consumed in the per-
formance of the work, description of the work performed, the
hour-rate, on a day-rate pay-basis, the piece-rate and the total
cost of the work on the piece-rate basis ; with spaces for the gain
or the loss of the company in having the work done, on the basis
of actual performance, which may be either a time-rate or a piece-

Operation No.

Operation Name

Department

Date

Day Rate

Cost per
100 day

Rate per
100 pes.

per day. ! ^''"'^'

....

Estimate Annual Cost 9

. . . .

Note : 1 DayMio hotim. |

Card Form J. Piece-work Cosl-Card. 5 ins. x 3 ins., White.

326

THE COMPLETE COST-KEEPER.

rate basis. The other space, headed "remarks,'' provides for spe-
cial notations regarding the tabulation record on the line opposite.
Card K. Permanent Inventory. These cards are made by
the cost-clerk and retained in the cost-department, being filed in a
binder. The inventory is made on five cards only, respectively
entitled "rough stores," "partially worked stores," "factory sup-
plies/' "obsolete stores and parts," and "finished stores." The
cards are started with the inventory of each item of each one of
these groups, which is entered in value in the debit column. A
weekly report is received by the cost-department from the book-
keeper, giving the purchases for the week under any of these
heads. The cost-clerk from his analysis-sheet, as described else-
where, makes a weekly report of the stores transferred from any
one of these groups to another, ascertaining from the analysis-
sheet the proper weekly posting to the credit columns, thus show-
ing the net reduction of the corresponding permanent inventory
group. The balances of these five sheets show the inventory value
of all stores, rough, partially worked, and finished, owned by the

Title of Permanent Inventory Account.

Date.

Debit.

Credit.

Balance.

Date.

Debit.

Credit.

Balance.

II 1 1

1 II !

Permanent Inventory.

Card Form K. Permanent Inventory. 7j^ inches by gj^ inches.
Yellow and White.

THE COMPLETE COST-KEEPER.

327

Factory Expenditure for week ending 190

Sten.Ord.No.

Group : —

Hour*.

Labor.

Mmterial.

... 1

! " 1

Card Form L. Factory Expenditure Report. 7% by 9% inches. White.

company, the value of the stock in process being shown by the
uncompleted cost-cards.

Card L. This is the Factory Expenditure Report-Card.
These cards are made each week by the cost-clerk, the figures be-
ing derived from his labor and stores analysis-sheets, and are filed
in order of date in a binder in the cost-department for reference.
There are three cards written each week, the first showing the
expenditures made for permanent investment, the second the ex-
penditures for indirect expense accounts, and the third, expendi-
tures on direct production. The total of each sheet appears in the
central space. In the space to the left the standing order-number
appears, which shows the classification of the account, as describ-
ed in the standing order system. Opposite each standing order
is the specific title of the account. In the columns to the right
appear the hours of labor, the value of the labor, and the value
of the material expended for each of these accounts. The total
of the labor-column balances the pay-roll. The total of the mate-
rial-column represents the net reduction each week of the several
permanent inventory accounts. These sheets furnish the manage-

^28

THE COMPLETE COST-KEEPER.

Form Mi.

Check
No.

Ref.
No.

Names.

Rate.

Date

employment

beRan.

Date

employment

ceased.

Address or
remarks.

IIO
III
113

"3
114
"5
1X6

I20
121
122

130

131
132
133
134
135
136

150

I
2

3
4
5
6

7
8

9
10
II
12
13
14
15
16

19
20
21
22
23
24
25
26

27
28

Sheet No. 100- 1 Covering period from October 15, '98, to

I^ORM M2. 1

Total

amount

paid.

Ref.
No.

3
ao

31
23

33
24
2S

39
30

Amount

of
charges

Amoimt 1
piece. 1

Amount

time.

Amount
ouuide.

tinne

OYer
Ume

W T

Re.
marks.

Am'nt br'

ght toi

-wa

••

•

*■

.......

'■

. ...

....

••

■'

....

, ,1

Sheet No. loo-i. Week endinjir October ai, 1898. |

Cabd Forms Mi and Ma.

»• Scuttergood " Pav-RoU. Mx is 10 by za inches.
Ma is 6>^ by 13 inches.

330 THE COMPLETE COST-KEEPER.

ment with weekly information as to the variation in the indirect
expense rate.

Form Mi. Pay-Roll Sheets. These are preferably filed in
a binder. The form M2 is filed immediately on top of the form
Mi. This is the ordinary long and short-leafed form. The form
Mi, of the wider sheets contains the record of the numbers, names,
and rates of the workmen, together with the dates of their enter-
ing and leaving the employ of the company. Form M2, contains
the daily time-work or piece-work record, together with the ex-
tensions in total for the week. The object in using a pay-roll in
this form is to avoid the frequent re-writing of the names that is
necessary in pay-rolls of other forms ; the narrow sheets comprise
all financial details of the pay-roll from week to week, while the
wide sheets record all the facts relating to the workman's per-
sonality. This pay-roll is kept by the paymaster.

Card N. The Requisition-For-Purchase Card. These cards
may originate with any foreman, but more frequently originate
with the storekeeper, stores-ledger clerk, or superintendent, and,
as the title indicates, are forms issued for requisitions for purchases
of stores of any description whatever. The cards go first to the
stores-ledger clerk, who passes them, if the purchase required is
consistent with the maximum or minimum of stores which he has
been directed to keep on hand, to the superintendent for approval
of the purchase; then the cards go to the purchasing clerk, who
makes out the purchase order, indorsing it with the number of
the purchase ordered, and if, in his judgment, the goods cannot
be obtained by the date required, so indicates it, returning the card
to the stores-ledger clerk. The stores-ledger clerk files this requi-
sition for purchases in the card-cabinet with the stores-ledger
cards, the requisition being placed immediately behind the related
stores-ledger card. Each card shows the date of the requisition,
the department for which required, the quantity and the descrip-
tion of the stores required, and the purpose for which required ;
that is, whether for the replenishing of the stores, or for some
specific production-order; the date of delivery desired, and the
purchase order-number. The purchasing agent also stamps across
the face of the card, "purchase-order given,'' with the date of giv-
ing. By filing these cards with the stores-ledger cards, as just
«hown, it becomes possible to immediately ascertain from the

THE COMPLETE COST-KEEPER.

33^

Purchase order

Department

Date

Quantity

Description

Purpose

Wanted by what date

Required by

Approved

Put only one entry on a card and return promptly to office

Requisition for purchases.

Card Form N. Purchase-Order. 6x4 inches. Blue.

Stores-ledger clerk precisely what orders are outstanding for any
particular article. These cards remain in the stores-ledger cabinet
until the material-received card shows the delivery of the goods,
this material-received card being checked by the requisition-for-
purchase card. The requisition- for-purchase card is filed in cheap
cabinets by purchase order-number, and after a period of three
or four months may be destroyed, as probability of desire for fur-
ther reference to these cards is very small.

Card O. The Material-Received Card. These cards take the
place of all other records of stores received by the receiving clerk.
All stores of any nature whatever entering the factory are re-
corded on these cards by the receiving clerk, who is merely an
assistant to the storekeeper, and properly located in the stores-
department. All stores immediately pass into the charge of the
storekeeper, unless he directs otherwise. Material-received cards
pass through the hands of the storekeeper to the stores-ledger
clerk, who first checks them acrainst the purchase requisitions and
then uses them to check the bills from the seller. The material-
received cards are then filed at the desk of the stores-ledger clerk

2^Z2

THE COMPLETE COST-KEEPER.

Required for

Department Foreman

Date

190

Quantity.

Articles.

On Pure. Order

Remarks. .

Received by-

Pat only one entry on a aird and return promptly to OflSce.

Material-Received Card. Form 19.

Card Form O. Material-Received. 6x4 ins. White.

in order of date, and thus constitute a record of all goods received.

Card P. The Material-Delivered Card. These cards are
made by any of the workmen who have occasion to draw stores
or supplies, and, after approval by the foreman, go to the store-
keeper, who delivers the required material and retains the card.
The cards go from the storekeeper to the stores-ledger clerk, who
makes a corresponding entry in the stores-ledger cards, deducting
amounts delivered, and at the same time extending the prices of
the material-delivered cards ; he arranges the cards in order-num-
ber sequence, and sends them to the cost-clerk, who enters them
on the analysis-sheet, as elsewhere explained.

Card Q. Material-Returned Card. These cards are handled
in precisely the same manner as card B, excepting that they record
credits of material to production-orders, instead of charges. These
cards are filled by the storekeeper, who hands them to the man
returning the stores, the man in turn passes these slips to his fore-
man, bv whom thev are sent to the stores-ledg-er clerk, and after
entry in the stores-ledeer, are filed bv the stores-ledger clerk.

Cards Ri and2. Stores-Ledger Cards. These cards are made

THE COMPLETE COST-KEEPER.

333

out by the stores-ledger clerk and retained by him, being filed in
the stores-ledger cabinet arranged by class of stores, all the stores
in one class being sub-arranged by the dimensions of the articles
recorded. These cards receive all the records of the material-
received cards, material-delivered cards, and material-returned
cards, and consequently show the balance of stores on hand at
any time. A notation in the upper right-hand comer of the card
provides for records of the maximum and minimum quantities
of the various items which have been determined upon as being
desirable to maintain. It is the duty of the stores-ledger clerk
to notify the superintendent when either the high or low limit
is closely approached, so as to avoid overproduction or overpur-
chase, and also to avoid depletion of the stores, and consequent
delays in filling orders.

Order No. To Department

D
Foreman

Date

Quantity Description

Value

Delivered

Received by

Put only one entry on a card and return promptly to office.

Card-Form P. Material-Delivered, 6x4 ins. Buff.

On pages 336-340 following are given forms for the Standing
Order Cost-Sheet and Department Cost-Sheet, the application of
which is discussed on page 303.

334

THE COMPLETE COST-KEEPER.

Order No.

From Department

D
Foreman

Date

Quantity Description

Value.

Delivered by

Received by

Put only one entry on a card and return promptly to office.

Card-Form Q, Material-Returned, 6x4 ins., Terra-Cotta.

List of Forms For a Small Establishment.

For a small plant, employing say from 15 to 40 men, desiring
to introduce a suitable system for obtaining and recording the
most essential current facts regarding production, the following
cards and records are recommended, selected from the forms pre-
viously described, viz: Time Cards, Hi, Pay-Roll Sheets, form^i
Mi and M2, Purchase Requisition N, Material-Received Card O,
Material-Delivered Card P, Material-Returned Card Q, Stores-
Ledger Card Ri, and the Cost-Card S,

THE COMPLETE COST-KEEPER.

335

No. or size

Article

Unit

Max

Min

Date Reed

Price

Dmte

Deld

Date

Del'd

Date

Del'd

RaLnnce

ValaeBaL

;

....

■■

.... J

Card-Form Ri. Store's Ledger both sides printed alike, 6x4 ins. White.

No. or sire

Article

Unit

Max.

Min.

Received

Deliver e

1^1.

Vai.Bat.

. . . 1 . .

••

....

••

....

••

....

••

....

••

....

.'....

.1 L .

•

....

* * * *i * '

—

....

••

|. .

...'--

. . .

...J..

. .. .

•♦

...J..

..I.... ..

...J..

::!:...,:

, .1 . . . 1 . .

..1....1..

::i::::l;;

••

...

Card-Form R2. Stort^s- Ledger Card, 6x4 inches. White.

33^

THE COMPLETE COST-KEEPER.

Standing Acc't No.
Explanation

Title

■'iipt.

General 1

Department. |

Material

Hrs.

Dii.
Labor

Kac.
Exp.

Material

Hrs.

Dir.
Labor.

Fac.
Exp.

I 1

■ ■ 1

Standing Order Cost-Sheet, 24)^ ins. x 10 ins.

THE COMPLETE COST-KEEPER.

337

Department

Dmte

Direct Labor

Hours

Propor. Gen.Adminis. Charges

•

-«' —

Departmtnt Cost Sheet.

338 THE COMPLETE COST-KEEPER,

Supt.

Fore-
men

Other Ind.
j Labor.

Power.

Heat

LiRht

Factory
Supp..

....

••

Department Cost Sheet.

THE COMPLETE COST-KEEPER.

339

Repairs.

Depreciation.

To
Buildinf^

To
Machinery

To Small
Tools.

To
"BviiXdinKB.

To
Fixtures.

To
Machinery

....

i- ■

....

. ,

. « * •

Department Cost Sheet.

34G

THE COMPLETE COST-KEEPER.

Departm
Dates

•t(

[Constant

Department Cost Sheet 24^<^ ins. long x lo ins. high.

THE COMPLETE COST-KEEPER, 341

Graphic Exhibits.

The Graphic Exhibit takes the form of a line varying direc-
tioH ; for convenience this line is usually laid down on a sheet of
engineer's quadrille ruled paper, the upper or lower line being
filled with time-divisions or dates, while the right and left vertical
lines of spaces are used to represent value-divisions. The time-
divisions may represent hours, days, weeks, months, or years,
and the value-divisions may represent mills, cents, or dollars,
according to the nature of the proceeding, production, or expendi-
ture to be delineated. Again the right and left-hand vertical col-
umns may be assumed to represent various divisions of weight,
as might be thought convenient for a graphic exhibit of coal-con-
sumption.

Having thus assumed value locations for the two directing
elements of the graphic delineation, it is a perfectly simple mat-
ter to lay down the line, by placing the mark in the left-hand time
column of squares at the elevation indicated by the value, cost,
or weight, of the thing under consideration ; in the next column
of time-spaces the volume mark is placed at the proper elevation
for that date ; if this mark is above the first mark made it shows
a variation by increase, if below, it shows a variation by reduction,
while if at the same elevation as the first mark made, it shows
that there is no change from the volume or value record denoted
by the first entry.

Taking an example of the simplest form for an illustration,
let it be required to construct a graphic exhibit of daily factory
fuel consumption for the first week of January, 1899, where coal
only is considered. In this case the lower line of squares is assum-
ed as representing the required time-divisions of days, while the
left vertical column of squares represents hundreds of pounds
of coal.

The consumption of coal January i, was, as shown by the
fuel record, 1,250 pounds. Therefore the first point in the line
is in the January i, vertical column, and in the middle between
the 1,200 and 1.300 pounds, horizontal divisions. January 2, with
more men in work. 1.600 pounds of coal were burned, hence the
work for that date is in the middle of the 1,600 pounds space.
January 3 was cold, and 1.750 pounds of coal were used. January
4, nearly the same, 1,700 pounds. January 5. the weather was

342

THE COMPLETE COST-KEEPER.

1M0

tTOO

150C

140C

1300

120C

g 1000

° MO

O 800
700
600
500
400
800

****

'***.

,♦**

VV-*

+++^

♦ *♦*

- *
4.

.-"

-''

^-^.

""^.

.-"'

-.&'

\
\
\

♦ff

\
\

A-

■^
?

\
\

)

•*

100

■4-

i6oa

150ft

- 1200

1000

700

400

200

100

+4-+++4-+

2 3

T. W.

BOILER FURNACES
FORGE FURNACES
GAS FURNACES

4
TH.

6
SAT.

7
SUN.

Graphic Exhibit of Fuel Consumption.

THE COMPLETE COST-KEEPER, 343

still cold, and again 1,700 pounds were burned. January 6, Sat-
urday, was a short day, and was warmer, and the consumption
dropped to 1,550 pounds. Sunday, the 8th, only steam for heat-
ing was used, and the fuel consumption fell to 900 pounds.

Suppose now, that natural' gas also is used in the factory,
and that it is desired to show by graphic delineation, on the same
card, both the coal and gas consumption. In this case the left-
hand vertical column may stand filled in black figures for hun-
dreds of pounds of coal, and the right-hand vertical column may
be filled in in red, for hundreds of feet natural gas burned. Say
ihat on Monday 700 feet of gas were burned : this makes the red
gas-consumption line begin in the 7th space, January i. This line
is dotted to represent red. January 2, 900 cubic feet, January 3,
1,000; January 4, 900; January 5, 1,000; and on Saturday,
January 6, only 600 feet, and on Sunday, January 7, only 200
cubic feet of gas were burned, all as is shown graphically by the
dotted line on the exhibit card. Once more, suppose that drop
forgings form a part of the output, and that the coal used in the
drop-room heating is to be added to the record by a blue line,
which is here indicated by a succession of crosses, taking the
original hundred weights left-hand column for the pounds-of-
work heating coal burned. January i, only one hammerman was
at work, and he burned 3(X) pounds of coal. January 2, there
were more fires in the drop-shop, and 1,100 pounds of coal were
bumed in the muffles. January 3, 1,000 pounds; January 4, 1,050
pounds; January 5, 1,100 pounds; January 6, 800 pounds; and
none on Sunday, January 7.

From this simple illustration it readily will be inferred that
any detail of business expenditure may be graphically exhibited
by a line located by dates and expenditures, and also that the
relative fluctuations of two or more intimately related accounts
may be shown together on the same card, so as to show compara-
tive performance in a very striking manner. Hence it is fre-
quently very helpful to a manufacturer or factory official to have
some of the important accounts graphically presented, so that
ocular comparisons can be made of the various changes in expense
accounts, sales, costs, etc. For instance, tables may be made like
the exhibit shown, driving the variations from week to week, or
from month to month, in expenditures for permanent investment,

344 THE COMPLETE COST-KEEPER.

in indirect expenses, and in direct, or factory costs of production.
The total direct labor expenditure may thus be directly compared
with the aggregate number of production labor hours, thus giving
an ocular exhibit of increase or decrease in the productive value
of the labor. This again may be compared on the same graphic
exhibit with the current indirect expense and total costs of pro-
duction, and so show whether a higher price paid for the same
number of hours of direct labor has resulted in increased pro-
duction for the same indirect expense, with the favorable result
of a reduction of total costs. Graphic tables properly made are
of the highest value, as they give information enabling the manu-
facturer to intelligently modify his policy in many lines, and to
deal promptly with problems in the administration of the business,
because things are made at once apparent by the graphic delinea-
tion which could not be discovered without much labor, by scan-
ning ordinary tabulations of figures, which may record highly
significant facts so unobtrusively that their real import is not rea-
dily grasped. In the graphic exhibit the sharp rise or fall of a
line attracts immediate attention, and so does the divergence of
the lines of two related records which should converge to make
money, or the broken form of a line which should show a uniform
deflection upward or downward, if a recently adopted policy were
producing the results expected.

Graphic tables show in a striking manner all existing rela-
tions between the weight of raw material, the value of raw mate-
rial, the weight of finished product, the value of finished product,
and the hours of direct labor, and the cost of direct labor. They
also compel attention to be given to indirect expenses, which might
otherwise fail to be noted in important connections, and so give
the general manager highly important indications as to the cor-
rectness or incorrectness of his policy on certain lines-, and as to
the efficiency of those subordinates upon whom he is compielled to
rely.

THE CARD SYSTEM OF ACCOUNTING.

A general consideration of the economies and advantages aris-
ing from the use of cards instead of books.
By Roger A. Simonson.

The information contained in this chapter upon the card
system is wholly the result of experience upon the part of manu-
facturers who have used card systems and thoroughly tested their
practical value. The paragraphs which follow are, therefore,
rather a collective narrative of testimony than an essay upon the
subject in hand. And the manufacturer who has perused the
volume thus far will readily agree that the concentrated rays of
experience throw a stronger light upon this topic than the arti-
ficial glow of theory.

Unlimited Expansion.

The progTessive cost accounting of a manufacturing plant
necessitates certain factors which are essential to the mainte-
nance and completion of such records. The card system em-
braces these essential features by enabling the manufacturer to
readjust his items of cost and technical accounts to fit the succes-
sive changes made necessary by the developing features of his
business. In a growing manufacturing establishment, any book
system would become inadequate owing to the impossibility of
eliminating dead material and perpetuating growth by the inser-
tion of live matter, without limit, in perfect location.
Unity of Item Entry.

A progressive record of a manufactured article, demands a
series of unit entries capable of growth and interpolation. This is
possible only by utilizing a system which provides for a unity of
item entries. Each card record is unique in itself, a perfect unit,
yet capable of fitting immediately into its required place in the
system as a whole.

Collective Value.

This unity of item entry becomes invaluable for the purpose
of collecting, collating and correlating details of cost both for pur-

346 THE COMPLETE COST-KEEPER.

poses of summarizing and departmental analysis. In the foregoing
pages, the inception, growth and maturity of the finished product
are completely described, affording a fitting illustration of the
character of records necessary to properly clothe the information
essential to each progressive stage of manufacturing development.
Take for example the construction of a dynamo ; each part of this
mechanism has its cost properly inscribed upon a history card,
and the total sum of these cards when collected forms a complete
descriptive cost of the dynamo. Thus the card system by its unity
of item entry comprises when complete a collection of units repre-
senting the desired total cost.

Collation of Typical Costs.
But it is also possible to collate by means of cards holding a
corresponding relationship to a number of machines, a summary
of information which becomes invaluable as determining the aver-
age cost of the corresponding component parts of the totality of
such machines manufactured w'ithin a given time. For example
an electrical plant maintains a card system of cost accounting cov-
ering a period of years. Each collection or group of cards repre-
sents the constructive cost of an entire dynamo. But each type of
cards has its own identity, because the totality of cards comprising
a typical class, determines the average cost of production of one
complete line of component parts during the entire period of manu-
facture.

Cross Reference.

Besides the collection of the unit cost items, and the collation
of component parts statistics, it is also made possible, by means
of the card system, to correlate the progressive costs of parts
manufactured so as to focus the entire available information upon
a given problem of present manufacturing costs. This correlation
of cost statistics is accomplished by means of a cross reference
system by which a card referring to a specific production to-day,
identifies by cross reference a similar transaction prior by some
months or years and relative to the manufacture of an article dif-
fering in character. The inexpansible nature of any bound recep-
tacle for the inscription of costs, such as a blank book, would at
once destroy the ability of the manufacturer to thus keep in vital
touch with his records of production from each successive period.

THE COMPLETE COST-KEEPER. 347.

Let us illustrate by noting the experience of a manufacturer who
improved his process of electro plating by discovering a new for-
mula for the acid solution. Upon his cost card for the articles
manufactured, he enters an item for silver plating mountings and
makes a cross reference, showing the comparative costs of the lot
manufactured by means of the new process in comparison with
that produced by the former method. The result of each succes-
sive process or discovery is thus connected with the detailed cost
of the product by the wireless telegraphy of cross reference, af-
fording the superintendent instant access to records of all previous
experiments and experiences for his guidance in estimating future
costs.

Current Summaries.

A manufacturer recently expressed the opinion that the ittv^st
valuable feature of the card system as distinguished from other
methods of recording costs consists in the ability to tabulate per
diem current summaries of the cost and condition of goods in pro-
gress of manufacture. The fact that each new entry takes its
proper place in exact location in the system, enables the super-
intendent to maintain current summaries correct and up to date,
with less labor than is required to keep blank books in unsatisfac-
tory shape. The reason for this is that new items gravitate to their
proper location instead of being interspersed with records irrele-
vant in character to the synopsis of cost desired. That is to say,
a number of cost cards can be distributed in the cabinet, each being
assigned to its place in the group describing the progressive cost
of the article whose part it represents. Each day by looking over
all the cards which have thus far been entered the foreman of a
room is enabled to make up a current summary of work. And the
total of these summaries judiciously tabulated will give the super-
intendent live statistics and current costs. The maintenance of reli-
able balances is thus greatly facilitated by the card system which
from its historical character presents a cumulative as well as a per-
pefual value.

Perpetual Inventory.

From these current summaries can be obtained a perpetual
inventory, which it is usually desirable to maintain on a separate
system of cards known as the stock record. The difficulties in-

348 THE COMPLETE COST-KEEPER.

volved in keeping a stock record upon books need not be explained
to anyone who has tried this method, and what factory accountant
has not ? The varying kinds and conditions of stock, as well as
the great latitude of the quantity entries make imperative the use
of an elastic system, from which the dead matter can be expunged
at will and where the record of a particular kind of stock is afford-
ed the opportunity of unlimited growth. The fact that a current
inventory has of recent years become almost universal among
manufacturers, is due in some degree to the facility afforded by
the card system for proper inventory record.

Departmental Analysis.

The principle of individuality of item entry when maintained
upon a card makes possible a rearrangement of costs for special
and departmental analyses. A problem which presents itself to the
manufacturer is how to centralize the operations of various
factory departments, analyzing the cost statistics of each depart-
ment and collating them so as to unify the information for future
occasions. If the records thus collated are continued in bound
volumes, such comparison of departmental records becomes im-
possible, whereas by means of the card system the collated in-
formation is ever at hand. The value of this facility for analyz-
ing the records of each department is at once apparent. A com-
parison of the records of costs of the several departments reveals
points of value to the general superintendent. The amounts
charged to labor, material or the operation of special machinery
in a given department can be properly judged as to their economy
mainly by comparison with other departments. Not only can
one department be compared with another, but an authentic card
system will reveal the scale of costs throughout successive years.
Should the cost of identical transactions in a special department
vary greatly, a cause is at once looked for. It is possible for the
total costs of operating a plant to continue with comparative uni-
formity, whereas there may be discrepancies in the expense of
conducting the various departments.

Indfvidual Reference.
The same facility afforded the manufacturer to subdivide
and rearrange the card system at will, makes possible the consul-
tation of individual accounts of a particular transaction dissociated

THE COMPLETE COST-KEEPER, 349

from collateral records. The factory superintendent is obliged
many times daily to send for a completed cost, and if this cost
record is contained in a bound volume, the cost clerk and all work-
men interested in the progressive account which is daily inscribed
in this volume, are kept waiting while the superintendent runs
through the book from place to place and determines the cost
essential to him at that time. By means of a card system,
however, he can abstract the cost record of any completed product
from the entire system without disturbing any of the clerical force,
or any of the processes interested in the manufacture of goods
whose record is shown on the cards required.

Self Indexing.

His access to the card system is also direct to the desired in-
formation, that is to say, the cards are self indexing and require
no separate set of records to instantly locate he desired items.

Transposition.

The transposition of a progressive record is also an essential
feature made possible by the use of cards. An inscribed card
follows the part which it represents through the. successive stages
of manufacture, and the relative location of the card in the cabinet
at any time determines at a glance the present condition of the part
being made in the factory. It follows that a record which must
of necessity be intermittent in its character can be properly main-
tained only upon cards, a given amount of time and a certain
machine being utilized at one period, and additional cost as rep-
resented by the same process added later, after the part has gone
through other stages of manufacture.

Saves "Overtime Money."

The intrinsic economy secured by the use of cards is demon-
strated by the testimony of a successful manufacturer who says
that the entire cost of his card system has been more than compen-
sated during the year just closed by the sum formerly expended
as "overtime money" made necessary by a cumbrous system. The
payment of "overtime money" to clerical help is necessitateil
largely on account of methods which clog and retard the prompt
entry of current transactions during a time of special rush. Every
manufacturing plant has its periods of intense business pressure

350 THE COMPLETE COST-KEEPER.

when the capacity of the works is taxed night and day and even
then is far behind orders. In such cases the use of an inexpan-
sible, arbitrary method of cost accounting is simply disastrous
in its consequences, whereas by means of a card system every pro-
cess is immediately tabulated and formulates at once a clean and up
to date record, complete in itself when the whistle sounds for the
shutting down of the works or the shift of employees.
No Duplicate Labor.

A growing record of costs, if maintained upon books, pre-
sents a continual opportunity for duplication of items which have
become separated by interpolating current matter. This dupli-
cation not only results in confusion but entails no inconsiderable
loss of labor as well. By means of the card system, however,
such duplication becomes imposssible, for the card system being
elastic and separable in its parts, dovetails w^ith other forms and
enables the manufacturer to readjust to meet new conditions.
Numeric System.

The relationship of numerals to cards is in itself an interest-
ing subject. Briefly, each consecutive number is a cumulation
of units, and the corresponding card system represents a like cumu-
lation, each of which, complete in itself, is represented by a card.
By means of the terminal number tab card system (a series of
projections varying in successive positions from left to right
across the top of the cards) a tab is made to designate the unit or
terminal position of the number. Thus any number can be in-
stantly located without fingering the cards. If number 505 is
desired, it must necessarily be found on a card carrying a tab in
the fifth position; should the number be 509 the tab appears at
once in the ninth position, affording another illustration of the
principle that a card system is self-finding.
Classification.

The tab card system is used for many other purposes in
classifying cards. In order to separate quickly a special class of
records from the entire system, the tabs are punched, so that by
running a rod through a parallel row of tabs any particular type
of rf^cords may be extracted in toto without fingering each individ-
ual card. When used in combination with colors, tab cards
afford a wide range of classification centralized in one compass.
One system in use combines ten colors of cards with twelve relative

THE COMPLETE COST-KEEPER. 351

positions of tabs, thus providing for a possible tabulation of one
hundred classes of detailed costs in one compass. The tabs are
frequently used to designate dates of completion, and when thus
arranged, combine in one list both chronologic and alphabetic
arrangement. This feature is often the means of saving half the
labor, as when books are used, it becomes necessary to maintain
two separate lists, one by name and the other by date. With
blank books too, if a record must be made accessible from several
standpoints, the entries must be made in as many different places,
pages or volumes, as the case may be, while with the card system
the entry can be inscribed and so arranged that the color will rep-
resent one classification, the position of the tab another, and the
relative location of the card in the cabinet a third. In numerous
instances this feature has enabled manufacturers to maintain in
one complete record that which otherwise must have been trans-
cribed twice, thrice or even more times if preserved in book form.

Mechanical Features.

Another economical feature of the card system, rendering it
invaluable as a factor in cost accounting, lies in the fact that a
card may be made with one or more detachable parts in the form
of coupons. In authorizing the constructing of a machine, the
superintendent can enter upon the body of the card general infor-
mation, leaving a number of coupons, each of which may be de-
tached by the foreman of a room as soon as his process of manu-
facture is complete. This coupon is thereupon sent to the super-
intendent, the total assembled coupon-cards in the superinten-
dent's office representing the progress of the work through the
factory. The value of this system is enhanced by the readiness
by which a card record may be duplicated or triplicated. Blank
cards suitably printed and ruled with form appropriate for their
use, are blocked, interspersed with sheets of corresponding size
on light weight paper. Thus by one process, a carded record is
rendered in duplicate or triplicate, which in combination with the
coupon system reduces the labor of maintaining detailed cost
records to a minimum. Rapid consultation of the completed
record is facilitated by means of guide cards, protruding at fre-
quent intervals above the inscribed cards, and like sign posts
pointing the eye directly to the desired information. The rapidly

352

THE COMPLETE COST-KEEPER.

increasing demand for card system has stimulated improvement in
the manufacture of cabinets essential as receptacles for the cards,
4.nd the mechanism of these cabinets has been perfected so that
every possible convenience and safeguard is provided the card
keeper.

It is a universally recognized fact that each manufacturing
plant is unique in itself and possesses some features distinctive
from any other establishment. It is therefore essential that each
manufacturer should have a system adaptable to his own particu-
lar requirements. And this individuality of records becomes pos-
sible only by means of the card system of cost accounting.

THE EXPENSE ACCOUNT.

It would seem at first sight to be an easy matter to determine
whether a given factory expenditure should be charged as a loss,
or credited as a permanent j^ain to the business. When, however,
all of the aspects of any factory operation are considered fully,
it will be seen that there may be strong arguments for regarding
some particular item or items of expenditure as either loss or gain,
according to the angle of observation. This Janus-faced expendi-
ture item is more likely to appear in the machine-shop than in the
simpler manufacture of textiles and so on, where all material
purchased has a certain pretty constant waste percentage, and all
direct labor expended goes unequivocally to the production of sala-
ble merchandise. Precisely the same conditions occur in some
classes of metal-working establishments. Generally speaking, it
may be said that all cases of simple repetitive manufacture with
variations which are but slight or with no variations whatever, in-
volve fewer doubtful items of outlay than do those factory opera-
tions which lead to the production of improved new things, al-
though, when a close examination of certain items of textile-fac-
tory outla\ is made, it will be seen that there are plausible arg^i-
ments for charging them as permanent losses oi unproductive ex-
pense, or for crediting them as permanent gains and highly valuable
assets. So many different and oftentimes obscure causes and con-
ditions lead to the commercial success or failure of the factory
that an even fairly broad consideration of the scope and effect of
certain expenditures which seem, at first sight, to be unquestion-
ably chargeable to expense, will commonly show the truth of the
proverb asserting that there is no loss without some gain.

Take advertising expense, for instance. Obviously there can
be no increase of salable factory product gained by money spent
in advertising, hence advertising should be charged directly to
expense ; that is one view. A view which includes the probabili-
ties of the future shows at once that past advertising extends and
increases the probabilities of orders for the factory product in the
future, since the recognition and good will of the purchasing pub-

354 l^tlE COMPLETE COST-KEEPER.

lie are certainly at the very head and front of valuable factory
assets.

It is, however, more noticeably the case that accountants disa-
gree in a very marked manner over the final disposition of large
items of factory expenditure where there are certain tangible fac-
tory residues left in possession of the factory after the completed
finished product has been delivered to the customer and paid for
by him.

Suppose, in the instance of a machine-tool factory, an order
is received for a lathe of certain dimensions, and that because a
lathe of that particular size has not been hitherto produced by this
particular factory, or because the superintendent desires a better
product, or for any other reasor., the factory decides to fill this
order witli something differing fiom anything it has before made.
Similar cases arise constantly, and will continue to arise for a long
time, perhaps forever, since it is never safe to say that the final
best form of any machine product has been reached. It appears
today that the sewing-machine and the bicycle have reached
their ultimate forms and cannot be changed to advantage, but it
is not safe to assert that this is the case. We know that the
sewing-machine and the bicycle, which have both been subjects of
exhaustive research by mechanical experts and inventors of all
civilized nations, have been resolved into standard forms which
now appear to be incapable of betterment and have not recently
been changed to advantage. In the case of small firearms it has
often been thought that the final limit of possible improvement
had been reached ; but quite to the contrary, improvements in rifles
have been made very lately and more such improvements will
doubtless appear. Generally speaking, strenuous competition de-
mands improved machinery, and it may be safely assumed, there-
fore, that the production of new forms of existing types of
machines, having increased powers of accurate production, will
continue to be in the future, as it has been in the past, the most
important factor of commercial success in machine-building fac-
tories.

It having been decided to fill the lathe order with a new crea-
tion, the usual shop procedures are begun. First, the new lathe
receives arduous and costly attention in the drawing room, involv-
ing the severest labor of the highest talent available, with a cor-

THE COMPLETE COST-KEEPER, 355

respondingly large money expenditure, resulting in the production
of the drawings requisite for the building of the improved lathe.
Next the drawings go to the pattern-shop, and a costly set of pat-
terns is produced for the use of the foundry, which finally
furnishes a set of castings to the machine department, and the
actual construction of the new lathe itself begins. The lathe is
finished, delivered to the customer, is satisfactory and is paid for
at contract price, and the establishment building this successful
lathe has remaining in its possession the drawings and patterns
therefor, which may have cost more money expenditure than the
actual outlay for the construction of the lathe delivered to the cus-
tomer, or even more than the whole price paid by the customer for
the lathe.

At this point of this transaction, the actual case is very pos-
sibly this : the lathe builder has paid out more money in producing
the lathe than the customer has paid for it, and the whole matter
involves a loss, if the drawings and patterns are charged to the
expense account. If, however, the lathe drawings and patterns are
credited as shop assets, the whole transaction shows a gain on the
books, although more money has been paid out than has been
paid in, and if an actual cash gain is to be had on the transaction
it must come from future operations, involving the use of the costly
drawings and patterns left in possession of the factory.

The questions arising from this simple example of filling the
lathe order appear in connection w4th all factory equipment. At
the time a new factory plant has been installed and before produc-
tion and sales of product begin, the total investment represents, in
point of fact, a total loss, and unquestionably should be charged
directly to expense, and this is in some cases done, and the whole
cost of an extensive factory equipment, outside of the forced sale
value estimate of the ground and factory buildings, is written
into the expense account, thus making the concern a bankrupt on
the face of its own accounting, or, if not a bankrupt, because of
faith and yet unexpended capital in the hands of its projectors, a
heavy debtor with no assets. This is the actual position of the ne>v
factory not yet in work, and if the factor\' accounting is based on
the actual condition of time past and present, every thing to date
is an outlay with no return and must be written as a loss.

The expectation for the future is not an accomplished fact.

356 THE COMPLETE COST-KEEPER.

It is a possibility, beyond any question, and a clear probability in
the minds of those capitalists who have invested in the factory
plant. It may even be said correctly to be as likely to produce
profitable returns as any human efifort can be, and yet the fact is
that when the factory opens its doors to begin production its books
must show simply an outlay with no return.

Going back to the lathe order ; at a subsequent period we may
find that the patterns and drawings have proved to be assets in con-
stant profitable use; the lathe may have been found extremely
suitable, and many duplicates may have been ordered and the
whole transaction at this period may show a large gain. On the
other hand, the lathe may have met only a special and rarely occur-
ring demand. There may have been few orders for duplication,
or none at all, and the drawings and patterns instead of being
valuable assets in constant profit-producing use, may have been
wholly unproductive, and even a source of more loss in the way of
insurance and storage room.

Hence it is very clear that the factory accountant who deals
with facts and conditions of the present moment only will write
the lathe drawings and patterns into the expense account, and thus
make the transaction of filling the original lathe order show a loss,
while the factory accountant, who has hope and faith in the future,
will write the lathe drawings into the factory assets because of his
reliance on probabilities. And both proceedings are correct, and
no difiference in the future profits or losses of the lathe builder is
made by writing the drawing and pattern costs either way. But
in the one case the accounts show a gain which has not accrued,
while in the other case they show a loss which at some future
time may be recouped ; hence either accounting may be shown in
the future to be faulty.

If the case of the lathe order is carried to the extreme, and
the lathe builder continues to work only on new orders without
duplication, he must, of course, transform his cash in bank into
unused drawings and patterns, and cease to do business when his
original capital is exhausted, and precisely this condition of affairs
has occurred many times where the operations of a machine fac-
tory were directed by a really skillful and able machine designer,
whose every individual creation was an operative success, and who
well and worthily sustained his high reputation as a mechanician.

THE COMPLETE COST-KEEPER, 357

In this lamentable and not infrequent case, the ingenious man-
ager may fancy up to the last moment of open doors that he is
in a prosperous financial condition, because his books show large
gains in the way of shop equipment which are his very own. He
says to himself: *'A11 of these machines which I have produced
have been good, have given satisfaction, and the drawings and
patterns and special tools for their production must certainly be of
great value, because they will enable me to produce future dupli-
cations at a large profit." But this ingenious and able machine
designer has not the commercial instinct which leads him to devote
his energies to the procurement of orders for repetitions of his
work ; on the contrary, the natural trend and bent of his mentality
is to produce new things and ignore the successes of the past, and
if left to himself, bankruptcy is much more probable than commer-
cial gain.

The other extreme is found in the factory managed by the
mind of purely commercial instincts, the mechanical mind and the
commercial mind being as far asunder as the poles both in their
motives and methods of procedure. The man of mechanical
mind conceives the idea of a real and valuable improvement,
embodies it in usable form, scores an unqualified success, and
washes his hands of the whole matter; he has unriddled the rid-
dle, is satisfied with his effort, and either quits it and goes on with
something else, some new problem seized by his active mind, or
sees further improvements and refinements to be made, which may
be mechanically correct, but do not add very much to the working
value of his first achievement and so make no money. The com-
mercial mind sees the money possibilities inherent in the new pro-
duction of the mechanical mind, and gives its whole efforts to the
securing of orders for duplications, declaring the present produc-
tion to be not only the best thing that ever was, but the best thing
that ever can be, and setting its face like a flint against any change,
and so does secure orders for repetitions and makes money by
advocating established practice.

The commercial mind and the mechanical mind are often asso-
ciated as equal powers in a factory management, and sometimes
achie\'e commercial success where thus associated on even terms.
A money success is. however, much more likely to eventuate where
the deciding authority lies with the commercial mind, while the

358 THE COMPLETE COST-KEEPER.

mechanical mind is left at liberty to evolve new creations, being
capitalized and supported by the sale of duplications of past suc-
cesses, on orders secured by the efforts of the directing commer-
cial mind.

If the accounting is directed by the purely commercial mind,
the cost of developing new ideas is invariably charged into the
expense account, because the commercial mind instinctively and
naturally conforms to actual commercial conditions and fully rea-
lizes the possibility of forced sales with the factory door closed.

A going concern has intangible assets in the way of good
will and custom, which are undoubtedly of the very highest value
so long as the business continues with open factory doors. At a
forced sale these intangible assets become utterly valueless. They
shrink to nothing, and disappear as completely as if they had never
existed, although they were the very life and breath of the busi-
ness while it continued to be operative.

In the case of a forced sale, drawings, patterns, and special
factory tools are found to be absolutely without buyers. The
drawings are not worth so much as the rolls of blank paper on
which they were made. The patterns are not worth so much as
the lumber used in their construction cost, and the special shop
tools and fixtures, so highly valued by the fine mechanical mind
which produced them, will not sell for so much as would the iron
in the pig and the steel in the bar of which they were made.

Yet where the factory accounting is directed by the mechan-
ical mind it will invariably be found that shop tools and appliances
are carried in the accounting as assets, in greater or less degree.
In some cases a certain proportion of the drawing, pattern, and
special-tool-costs is charged to expense, and a certain other por-
tion is credited as an asset. Small tools up to certain sizes will be
found in some cases charged to expense, while above this limit
the costs of similar tools will be carried as assets.
' In point of fact, referring to machine patterns only, a large
stock of wooden patterns is a source of constant expense, requiring
great storage room — which must be neither damp, too cold, nor too
warm — large insurance, and fhe care of one or more attendants,
and individual patterns are often not used for years together,
while at a forced sale these costly patterns would bring absolutely
nothing. Yet it is a very common thing to find patterns appearing

THE COMPLETE COST-KEEPER, 359

in factory accounts as assets of many thousands of dollars in value.

The prime object of factory accounting is surely to present y
to the eye of the manager a correct and faithful showing of the
actual values under his control. Are those actual values the prob-
able forced-sale realizations, or are they the radiantly hopeful sup-
posititious values dependent on good trade and an abundance of
orders ?

To the purely commercial mind, taking nothing on chances,
the forced-sale value must appear to be the only proper value to
be given to factory plant in the accounts. To the mechanical mind
it seems preposterous to write all the cost of these highly valued
shop treasures directly into the expense account.

The one method makes the books show what could probably
be realized if the factory doors were closed. The other method
makes the books show the factory to be wealthy in many cases
where it is really bankrupt. It makes no actual difference in the
cash in bank whether these disputed items are w-ritten into expense
or assets. Account footings are not cash. But erroneous assumf>-
tions as to values, leading to erroneous asset totals, are very likely
to lead to errors in management, and surely the last thing in the
world to be desired by a factory manager is a self-deception, lead-
ing him to believe his cash resources larger, and even vastly
larger, than they really are.

It is perfectly true that the first requisite of commercially
valuable factory accounting is itemization showing correctly in
minute detail where the money goes. In the old days of the
machine shop it was a common thing to keep a "shop'' account,
and charge this shop account with all expenditures not directly
entering into the salable product. Both labor and material of every
description went into this shop account, lumped together, and the
footing told the manager the mere total of indirect expenditures,
and gave no indication of possibly economical changes in factory
methods because the items of expenditure were not classified.

The modem factory accountant divides the items of indirect
expense into building maintainance, plant betterments, machine
repairs which opens a repair account with each department of the
factory, with each detail of each department repair, and often with
each individual machine — certainly with each separate class of ma-
chines in the factory plant, and so on ; he knows, or believes he

36o THE COMPLETE COST-KEEPER,

knows, exactly what the factory pays for sweeping floors, carting
ashes, and oiling shafting, and aims at minute exactitude in all
records of indirect expenditure. This inevitably leads to a close
scrutiny of every item of this class, thus enabling the manager to
decide readily on changes of methods or men ; it also leads directly
to the view that all such items of indirect expenditure as are devot-
ed to permanent betterments of buildings, tools, or plant generally,
go towards the reduction of the cost of merchantable product, and
hence sliould be credited as assets, either wholly or in part, al-
though, as previously pointed out, there is no possible way in
which these items can be made directly to return the cash which
they cost. They are of value to the going concern only, and do
not bring anything at forced sales.

But the modern factory accountant must of necessity have a
judicial mind and also an active conscience. He must be able to
perceive clearly the whole result of his indirect expenditures, and
he must apportion his charges correctly according to these effects.
These needful qualifications of the good factory accountant lead,
in many cases, to really exasperating shadings and divisions of in-
direct expense, often involving much clerical labor and particu-
larly obnoxious and aggravating to subordinates who lack the
wide view and high sense of justice and quick conscience of the
superior accountant who installs the system.

The subordinate says : "Why is all this unending labor of use-
less hair-splitting added to the really useful part of my work?
Why must I be always on the outlook for the prescribed final dis-
position of these small and trifling items, which might just as well
go bodily into the general expense and done with it, as be split
up on a fanciful scheme of percentages, and charged into some of
these minor divided accounts, none of w^hich can ever be returned
to the factory in direct cash?"

From the standpoint of the subordinate his complaint is well
founded. The chief accountant, is, how^ever, likely to resent such
criticism with an intensity of acrimony precisely proportioned to
his real breadth of view, sense of justice, and activity of con-
science. Hence the chief accountant says: 'The object of our
w^hole accounting system is to group allied items of expenditure
finally under headings which correctly represent the ultimate re-
sults of such expenditures. True, the money has gone, and will

THE COMPLETE COST-KEEPER. 361

never be returned in direct form. Part of this money has been so
expended that it has no future earning powers ; part of it has been
so placed that it has large and valuable future earning powers. I
might as well throw away the whole system as fail to recognize
these differences in minor expenditure results.''

Consequently the chief accountant commands the subordinate
to follow the system, and the subordinate obeys under strong
mental protest, and a condition of high frictional resistance is
established and maintained permanently, much to the detriment
of the comfort and efficiency of all concerned.

This is no merely fanciful supposition. In one of the largest
and best of American machine-tool factories a cost-system was,
and probably still is, in use which involved a vast number of minor
divided expense accounts. This system was installed by one of
the chief owners, a man of naturally high abilities with great
breadth of view and a keen sense of justice, who has given a vast
amount of consideration to factory accounting, has traveled ex-
tensively both ii? Europe and the United States, and is familiar
with both the general theory of factory accounting and the partic-
ular systems adopted in many establishments of high repute. Yet
the cost-keeper of this large establishment, who with seven assis-
tants found it difficult to gather and separate the items of expendi-
ture according to the system installed, had no hesitation in saying
with bitter emphasis that all this unremitting labor of cost-keeping
brought in absolutely no valuable return, and that in his opinion,
in view of the constant friction caused by the exercise of autocratic
authority necessary to carrying out the details of the cost gath-
ering, the factory would actually be better in every way if the
whole cost-keeping system was thrown out of the door.

In this case at least, it was clearly evident that however valu-
able detailed information as to minor expenditure items may be
to the manager, there is yet a limit to the subdivision of accounting
beyond which it is highly undesirable to go.

Probably there will always be very wide margins of differ-
ence between the methods of really successful factory accoun-
tants, in this particular of the final disposition to he made of indi-
rect expense items. There is always the choice to be made be-
tween the view that regards closed doors and forced sales as a
possible finalitv. and the view that holds the factory to be a vital

362 THE COMPLETE COST-KEEPER,

individual existence, with probabilities of immortality.

In point of fact, factories begin, run their course of natural
life, and die, like all other creatures, so much is certain from the
daily record of current events.

Some factory accountants will hold to the theory that their
business is to deal with going concerns, and that the factory with
closed doors, dead and gone forever, is not a profitable subject of
consideration. These accountants will carry a greater or less pro-
portion of the indirect expense into accounts showing as assets.
Other factory accountants, taking heed to the fate of all human
enterprises, will have closed doors always in their mental view,
and will write, directly into the expense account, all outlays which
cannot reasonably be expected to return in cash or bankable paper,
with no saving clause whatever as to future earning possibilities.

MECHANICAL AIDS TO FACTORY ACCOUNTING.

Under this general title some of the various time-clocks,
watchman's detectors, programme-clocks, and calculating
machines which are offered for factory use are briefly noted in the
following pages. Some of these machines are not adapted to use
in ordinary factory accounting, but all have their fields of possible
employment in facilitating manufacturing and financial opera-
tions, and are of interest.

The most important of these machines, from the factory
accountant's point of view, are, of course, the workmen's time-
clocks, which register the time of arrival of the workmen at the
gate, each man's individual record being made by his own hand.
There are two general types of these clocks, in one of which each
workman carries a key, which he inserts in a keyhole in the re-
cording-clock case, and gives it a turn, thereby recording his num-'
ber and the time of the operation. The other form of workmen's
time clock does not require the use of a key, it being provided
with push buttons, so that all the workman has to do in passing
the gate is to push the button bearing his number. This is a
very rapid operation, and seems preferable in point of speed to
the key systems.

In regard to the efficiency and economy of making work-
man's time records by the use of a clock, there seems to be no
question. The use of workmen's time-recording clocks is thor-
oughly established in a great many of our largest factories, and
the use of these clocks is rapidly extending; in fact, it may be
said that nearly all factories at present use either the individual
workman's brass check, or some form of time-registering clock,
the workman being made, with both the brass check and the time-
clock, to register by his own act the hour of his arrival at the
works.

364 THE COMPLETE COST-KEEPER.

In some shops, however, the workmen's time continues to be
taken in the old manner by a time-taker, but there seems to be
no reason whatever for the continuance of this early method. It
surs'ives in some old establishments, probably because of an im-
pression that time taken by an official appointed for that purpose
gives a more reliable and authentic record than that obtained by
any other means. This view, however, does not seem to be well
founded. On the contrary, it appears to be quite certain that the
mechanically made record is by far the least liable to error of the
two, because if the mechanism of a time-clock is regular in its
action, nothing could well be more accurate than the record made
by the workman himself on the sheet of paper carried by the clock-
cylinder.

In the most advanced systems of factory management me-
chanically made workmen's time-records are universally employ-
ed; and it may be noted that in these advanced systems the
mechanically made time-record is invariably accepted as correct
and final. This is in strong contrast to the common practice
where the workman's brass check is used, it being in many shops
the custom to adjust the time-record twice each day where the
brass check is used. This procedure always involves the expen-
diture of considerable time on the part of the time-clerk, and of
the foremen of the various departments.

This practice of adjustment, or going behind the records in
any matter connected with factory accounting, appears to be
wholly indefensible. The record once made in any branch of fac-
tory accounting should be held as final ; "adjustment" admits the
probability of error in the original entry, and casts doubt on the
-whole system of accounting employed. Circumstances continually
arise, however, which make it necessary to make adjustments of
charges to customers, and such adjustments and revisions are
unavoidable.

In the case of the workmen, however, a single record in the
simple matter of time-arrival of the workmen at the factory
should be sufficient. The workman is in intimate relation with
the factory, and upon taking service accepts the rules and regu-
lations in force in the establishment, and hence it is quite possible
to make such conditions with the workmen as may seem just and

THE COMPLETE COST-KEEPER. 365

desirable by the management. In general terms it may be asserted
that better results are obtained from very strict and inflexible
time-regulations than from a benevolent policy, which allows a
certain margin for human fallibility. Undoubtedly human falli-
bilities exist. Undoubtedly, also, the more lenient the treatment
accorded to fallible human beings, the more fallibilities will ap-
pear in their conduct.

In the authors experience, extending over many years in
many different workshops, it has been the rule that the best results
in regard to the promptness of entry of workmen were to be
found in the shops where the rules were most strict; and it was
also uniformly observable that there was far less complaint and
ill-feeling on the part of the workmen in the strict shops, than in
those where a few minutes latitude was tolerated.

In one large and well remembered establishment, the regu-
lations demanded that every workman should be at his place of
employment in the factory, with his working clothes on, and his
tools in his hand, at the time of whistle blowing. Although this
rule may seem arbitrary, it was, so far as could be observed by a
mere w^orkman, highly satisfactory in operation both to the men
and to the management.

It may seem hard that the factory door should be closed
exactly on the stroke of the clock, thus possibly shutting out a
man whose foot was already on the threshold and causing him to
lose time, but such was the inexorable practice in another large
establishment, where the door was closed and was not opened
ag^in for 25 minutes, when it was opened for 5 minutes, and again
closed until quarter-time, when it was again opened for 5 minutes,
closing at the end of the first quarter of the day. This forced the
workmen to be either in the shop on time, or to lose half an hour,
or a quarter of a day.

In these two shops mentioned, which had the most severe
rules in regard to workmens' entry of all establishments within
the writer's personal recollection, the attendance was uniformly
prompt, and there was never, as now remembered, ai\y particular
evidence of dissatisfaction on the part of the workmen ; all were
treated alike, and every man knew exactly what was expected of
him, and what he would receive, which are conditions highly

366 THE COMPLETE COST-KEEPER.

favorable to harmonious relations between employer and wage-
earner.

In the case of personal adjustment with individual workmen
in regard to small losses of time, a man is never certain that he
will suffer the penalty of his own fault, but is always hoping that
by some plea he can keep his time good, whether he is late or
not. Good factory management may be said to consist of clearly
defined lines of conduct, as between employers and employed, so
rigidly enforced as to admit of no variation whatever.

While it is true that cases arise in which the workman may
think himself hardly treated, and in which the employer himself
might wish that he could be free to exercise clemency without
breaking his own regulations, there is, nevertheless, a smaller per-
centage of dissatisfied workmen under the strictest rules, than
under the most lenient regulations consistent with any approach
to business-like management.

If this assertion be accepted as correct, then the mechanical
record of the workmen's entry to the factory is wholly unobjec-
tionable, and it only remains for the factory manager to select
that clock which shall produce the w^orkmen's time record with
the least expense and inconvenience.

Before leaving the subject of accurate time-keeping and of
punctuality on the part of the workmen, it should be said that
the employer, and the factory accountant, should fully compre-
hend the real relations and respective losses and gains, as between
employer and workmen, which arise from want of punctuality on
the part of the employee. In the first place, the loss inevitably
falls wholly upon the employer. A w-orkman may be, and often
is, inside of the factory gates before starting time, and many
workmen make a practice of being ready to commence operations
as soon as the whistle blows, but it would be an unheard-of pro-
ceeding for workmen to begin work in advance of starting time,
hence there is no such thing known as the workman offsetting the
time-loss of one day by adding to his hours of labor on another
occasion. In the majority of cases the workman enters the fac-
tory gates only a minute or two before time to commence work,
with the consequence that before he has reached his station and
prepared himself for labor, there has been a direct loss to the
employer of from three to five minutes of the w^orkman's time.

THE COMPLETE COST-KEEPER. 367

The "Chicago Time-Recorder' says in this connection: "A
loss of only five minutes time for employees receiving a salary of
$2 per day amounts as follows :

Employees. One year.

25 $130.00

50 260.00

100 520.00

500 2,600.00."

This is the total loss, to the management, in wages only, from
a daily time-loss of only five minutes for each of the number of
workmen specified. There is a very large actual increment of
this loss, caused by reduced production in relation to fixed char-
ges. To offset these losses to the management, there should be
some decided gain to the workmen to justify a slipshod practice
which permits these continuous small losses of time without mak-
ing some strenuous effort to secure a better approach to punctuali-
ty, but in point of fact there is absolutely no gain to the unpunc-
tual workman ; the little time during which he should have
worked, but did not, is a mere negative quantity, benefiting no one,
and highly detrimental to the factory.

Many employers, however, feeling that the workman has long
hours of labor, comparatively small pay, and a hard life generally,
desire to render his lot as easy as possible, and hence say by their
acts, if not in so many words, that they will simply ignore small
losses of time, and take no measures, of sufficient stringency to
be effective, to correct the habits of the dilatory workmen. Some
workmen are always on time, others six days in the week manage
to barely get inside the works in time, or as often as not perhaps
are a minute or two late, always taking the extreme limit which
is permitted. This cannot be regarded otherwise than as a mere
personal habit on the part of the workman ; he has simply fallen
into the way of running as close to the clock as he possibly can
without certain loss to himself.

Punctuality involves no hardship for the workman. It is just
as easy under ordinary circumstances for the workman to be a
minute or two ahead of the whistle, as it is for him to be a minute
or two behind. The workman's gain from the toleration of un-
punctuality is absolutely nothing, while the loss to the factory
made by want of prompt attendance on the part of the workman

368 THE COMPLETE COST-KEEPER.

is a very serious matter ; and no employer can, in fairness to him-
self, pennit the continuance of any system, even though founded
in a generously benevolent consideration for the welfare of his
workmen, when he becomes aware that his sympathy leads to a
tardy appearance of the men at the gate.

It is, undoubtedly, largely the fault of the management of
some otherwise well conducted establishments that continual ad-
justments of the workmen's time are required. The employer is
kind-hearted, and cannot bear even to appear to oppress those who
are his servants. It is, however, a most mistaken kindness which
tolerates any laxity in the matter of prompt entering of the works.

A large number of key-operated time-clocks and a large
number of plunger-actuated time-clocks are in use. Both of these
forms of registering-clocks are here illustrated and described.

Calculating-machines in the various forms of straight and
circular slide rules, and of key-actuated machines for performing
the various operations of addition, subtraction, multiplication,
and division are well-known, and are very much used in some
establishments, while they are wholly ignored by others. It seems
very clear that calculating-machines should be used in every place
where their use is possible, as the results obtained are always accu-
rate, provided the mechanical action of the machine is perfect.

It should be noted, however, that it is not safe to depend upon
the action of any calculating-machine which can be made to give
erroneous results by operating it at a speed beyond a certain rate.
The use of calculating-machines is believed to be steadily extend-
ing, and in some forms, as the cash-register, in certain lines of
business they already are regarded as indispensable. Calculating-
machines could undoubtedly be used to great advantage in many
factories where they are not now employed. In the hands of ex-
pert operators some of the calculating-machines obtain results
much more expeditiously than is possible, even with very expert
accountants, by the use of ordinary methods of computation. In
the hands of persons who are not thoroughly accustomed to their
use, there is no gain of time by employing even the very best forms
of computing-machines, but there is always a certainty of correct-
ness in the results reached, and this is a very great point in favor
of the em.ployment of the mechanical device, rather than the speedy
mental calculations of the expert accountant.

THE COMPLETE COST-KEEPER, 369

Where there is more than one timepiece employed in a fac-
tory, it is an essential matter that all the clock-dials should record
exactly the same time. This demands either very good clocks in
each department, carefully regulated, and all made to corres-
pond daily with some one of the number selected as the standard,
or else that the movements of the hands of all the dials in the
factory shall be governed by some of the synchronizing systems
now so largely used, examples of which are illustrated and de-
scribed hereafter.

This matter of uniform time in all departments of any given
establishment is of more importance than might appear on the
surface. The general aim of every efficient system of factory
management and accounting must always be towards exactness in
every particular, and it certainly shows a lack of attention to
exactness in details, if the clock-dials in the different departments
of a large establishment are permitted to show a variation in the
time-record. Such variations are annoying to a correct sense of
the industrial fitness of things, and are also liable to provoke petty
discussions and lead to unnecessary conversation, all of which
can be avoided by the use of synchronized time-recorders which
cost but very little, if anything, more than an equal number of
fairly good ordinary timepieces.

The whole chronological equipment of every factory should
be such as to give uniform clock-dial readings throughout the
establishment, and the time should be exactly correct for the given
locality.

If the workmen once become convinced that the factory-
time is right, they very soon conform to the factory-time require-
ments. On the contrary, if the factory-time is found to be inac-
curate even at very widely separated intervals, there is always a
question in regard to shop-time which leads to disagreeable and
unprofitable results. No factory can afford to be without accu-
rate time, perfectly synchronized in all departments.

The programme-clock, by which is understood a clock-actu-
ated mechanism for giving various signals at different points at
certain predetermined times, is much more largely used in educa-
tional establishments than in factories. It seems, however, that
the programme-clock may be very well adapted to the equipment

370 THE COMPLETE COST-KEEPER.

of any factory which aims at a complete system of accurate
accounting.

Programme-clocks are now made which will automatically
vary the time of their announcements on different days of the
week, and which will insure the automatic performance of various
duties about the establishment, such as opening and closing the
gates, blowing the whistle, timing the night-watchman's duties,
other than the making of his regular rounds, and so on, the pro-
gramme-clock being now brought to such a stage of perfection
as to be able to certainly perform almost any operation in the way
of announcement, opening and closing of doors, whistle-blowing,
bell-ringing, and so on.

Here again, as in case of the synchronizing clock, accuracy
of chronology is obtained, and disputes and discussions are avoid-
ed by the elimination of the fallible human element. Unquestion-
ably the more wholly the determination of factory events can be
relegated to the unerring direction of correctly-actuated ma-
chinery, the less the possibility of question as to accuracy.

Broadly considered, the well-regulated factory is neither
more nor less than one complicated and accurately timed machine.
Time is the most important factor in machine-production as well
as in machine-action, and cannot be too certainly divided, and
recorded, and determined in any instance affecting factory-per-
formance. Hence the propriety of placing as many of the factory-
events as possible under the control of a clock of indisputable
accuracy.

Computing Machines.

Unquestionably, no work which can be performed accurately
and economically by machines should be permitted to burden the
muscles or tax the mental powers of man. While for his own
happiness and contentment every man must work, must have some
form of vocation or employment in which he may exert his
powers of production with both interest and profit to himself, all
sound economists are agreed that a given human effort should
produce the largest possible effect in the direction intended.

In consequence of this now almost universal demand for the
greatest effect from the least manual or mental effort, machines

THE COMPLETE COST-KEEPER. 371

have been invented and applied in nearly every field of production
with such encouragingly beneficial collective results, that almost
all opposition to the use of machinery, based on the fallacious belief
that the substitution of mechanical operations for hand operations
takes the bread out of the mouth of the working man, which once
led hand weavers to destroy power looms, and in the first half of
the nineteenth century drove mechanical traction off from com-
mon roads, has disappeared so completely that the whole world
may now be said to be ready and eager to make machines take the
place of muscular or mental labor in every case where such a sub-
stitution is clearly shown to be possible and profitable.

The only marked and widespread exception to this general
willingness to increase the output from physical and mental effort,
seems, oddly enough, to be found among bookkeepers and accoun-
tants in general, they as a class appearing to be yet almost wholly
indiflFerent to the possibility of lightening their labors by the use of
jards instead of books as mediums of record, and computing ma-
chines for carrying out the arithmetical operations inseparable
from any industrial commercial operation, instead of the laborious
and exhausting hand and head work methods bequeathed unchang-
ed from the earliest known days of traders and merchants to the
counting rooms of to-day the world over.

Between the use of books and card records there is no general
advantage as to accuracy. All hand-made records are liable to
error, and a faulty record can be made on a card as easily as on the
page of a book. The case of arithmetic computations is another
thing altogether, when the chances of error as between mental cal-
culations and mechanically made computations are concerned. It
is true that in no case is the machine-made calculation beyond the
possibility of error, because the operations of the calculating ma-
chines are inaugurated by hand-made movements of certain parts
of the machines, hence the possibility of error at the onset ; again,
tlicre may be an abnormal, unexpected and wholly unintended vari-
ation in the movements of the parts of the calculating machine after
it receives the original numbers on which it is to act. thus again
giving the possibility of error in the results shown mechanically.
It will be observed, however, that the machine is no more likely to
show an erroneous conclusion than is the pen of the accountant,
who may err in his first notation, and may again err in the mental

372 THE COMPLETE COST-KEEPER.

computations based upon the original figures recorded. So far,
the man and the machine stand on even terms. But the machine
has two generic advantages over the mental work ; it is not subject
to fatigue, and it is not subject to those vagaries of action which
sometimes cause a bookkeeper to make the same error at one point
only in his calculations many times in succession. It is very high-
ly probable that both the expert accountant and the high class com-
puting machine will handle the original notation correctly, but it
is absolutely certain that up to a certain rate of speed the machine
will do the right thing, while the best mentality is always liable to
what may be termed a sporadic error, an error which is not habit-
ual, which occurs in but one instance on a given occasion, and yet
which the mind may repeat through several successive scannings
of the faulty operation.

In the matter of fatigue, the machine has an enormous advan-
tage; it is as fresh and ready of reception and certain in action at
the end of the day as at the beginning.

These being the conditions, it seems very strange that com-
puting machines are in such comparatively small use, since the use
of such machines must at least relieve the accountant of a very
great part of his mental labor, and it is difficult to avoid the conclu-
sion that this rarity of employment is due solely to a general ignor-
ance of the labor-saving and accuracy-insuring qualities of calcu-
lating machines. The price of some of the best forms of these ma-
chines is hardly more than that of the best typewriters, hence it
cannot be the first cost which prevents their general introduction.
It is true that, like the typewriter, the computing machine is very
slow in unskilled hands, but this is true of almost all machines,
and in almost all cases where sufficient time is taken to make the
operator even fairly familiar with the operation of a good comput-
ing machine it is thenceforth regarded as indispensable.

Blaise Pascal, France, when but a youth of nineteen or twenty
years, is the first recorded inventor of a calculating machine of
considerable scope, a. d. 1642-5. Pascal was correct in his theory,
and his rhachine has been used as the foundation for many later
efforts.

Beginning with the never completed machine of Charles Bab-
bage, the construction of which absorbed a British government
grant of $100,000, besides a large part of Babbage's private for-

THE COMPLETE COST-KEEPER. 373

tune, an exhaustive presentation of all the various computing ma-
chines which have been attempted or produced would fill more than
one volume like the Complete Cost-Keeper, but as only a few of
these machines have been constructed with a view to counting-
room use, and of those so intended only a very small part have
ever enjoyed any degree of public favor, a comparatively small
space only is needed to contain all that is of working interest to the
practical accountant, although the whole art is one of most fascin-
ating attractiveness to minds inclined to mathematical and me-
chanical investigation. Babbage's machine was intended to per-
form mathematical calculations of the highest class, cost a large
sum of money and was never completed.

Edward Scheutz of Stockholm, exhibited to the Prince of
Wales, June, 1855, another machine, similar to Babbage's in prin-
ciple, for calculating tables by means of ratios or common differ-
ences, which not only made the calculations but automatically cast
stereotypes of its results, so that it avoided possible printer's errors.
A modified form of this machine is said to have been used subse-
quently to great advantage in producing a book of logarithms.

Coming down to less pretentious forms of calculating ma-
chines, there are two generic types, those in which index fingers
are set to proper figures and a crank is then turned by the hand of
the operator to cause the machine to go through the movements
required to produce the desired result, and those in which the crank
is not used, which are operated solely by pressing finger pieces,
generally like those of a typewriter, which indicate the numbers
involved in the particular problem under solution. The crank ope-
rated machines are largely employed in the production of actuary's
tables, astronomical calculations and other operations involving a
great number of figures, where they are highly valuable. They
are not, however, suitable for the counting room. Among the
more prominent of these machines are the Thomas, a French pro-
duction, improved and made by Tate, England ; the Odhner, a
Polish machine of comparatively small dimensions ; one by Bald-
win. St. Joseph, Mo. ; and one by Grant. Cambridge. Mass. In ad-
dition to these crank machines there have been quite a numl)cr of
variously operated small machines, some of which were sold for
very small prices, none, however, having come into sufficient use
to particularization here needful The slide-rule has not been

374 THE COMPLETE COST-KEEPER.

largely employed in any of its various forms as a counting room
appliance, because, altiiough much used in the engineering depart-
ment of many extensive establishments, it has never found ready
adoption among commercial accountants, probably because of lim-
itations in extent, and also because the units or final figure must
so often be an "estimate." Where the problem contains several
places of decimals, as is often the case in the drawing room, the
exact value of the final figure is unimportant, but such is not the
case in commercial accounting where balances must of course tally
to a single cent.

The Felt and Tarrant Computing Machines.

These two machines are manufactured under patents granted
to Dorr E. Felt, by the F>lt and Tarrant Mfg. Co., Chicago, Illi-
nois, U. S. A. The simpler form of the machine is named the
"Comptometer," and its outside appearance is very clearly shown
in the engraving given herewith. This machine is made with nine
rows of keys reaching away from the operator, and eight rows of
keys crosswise of the machine, 72 keys in all, handling all numbers
up to nine nines in addition, subtraction, multiplication and divi-
sion by simply striking the proper keys, the result being instantly
exhibited by the nine wheels, one character on each of which is
exposed, in the angle in front of the machine. This is the standard
form, and measures 14J inches long by 7 J inches wide by 5 inches
high. Ten, twelve and sixteen column machines are also made,
the last handling all numbers up to seventeen places of nines. The
Comptometer simply exhibits the result of a computation on the
wheels in front, and does not make a printed record.

The "Comptograph" adds and prints the numbers in a list at
the same time, and also automatically prints the footing under the
list, the impression of the footing being made by pressing down
a knob at the left side of the machine, while any keys wrongfully
struck can be released and returned to normal position by depress-
ing the lever seen at the right. The same amount can be added
repeatedly by first striking the amount on the keys and then strik-
ing the repeater pawl lying flat on top of the machine near the
release key, which causes the specified amount to be printed and
added whenever this "repeater" is depressed. The tops of the
first two columns of keys are white for cents, and those of the

THE COMPLETE COST-KEEPER.

375

next three cdumns are blue for the first three columns of dollars.
The printing is done either on the free end of a roll of paper, or
on an inserted slip. The Comptograph finds large use in banks,
and in all listing operations of the counting room. Easily manip-
ulated attachments provide for rectifying errors in striking keys,
for holding slips, as checks, in order so as to be conveniently turned
while listing them, and for handling the inking ribbon.

Fig. I. The Felt and Tarrant Comptometer.

The Comptometer is the simpler and cheaper of the two ma-
chines, and is of the more general application. Each key of the
Comptometer in the same crosswise row is marked with the same
large number in black, and to the left of this black numeral a
smaller numeral in red is placed, the sum of the two numerals on
each key being always nine. Thus, each one of the first row of

376 THE COMPLETE COST-KEEPER.

keys is marked with a black figure i, with a smaller red figu"e*8
to the right. Each key of the second row carries a black figure 2,
and a red figure 7, making the total nine, as before, and so on.
^n Addition is performed by simply striking the keys represent-
ing the different digits of the numbers to be added, taking the
right hand lengthwise column as units, the next column to the left
as tens, and so on. Ciphers do not have to be struck. Proof is had
in the same manner as in mental work, that is to say, by repetition.

For multiplication take example 2253x84; the key represent-
ing the first digit of the multiplier, see Fig. 3, which is the right
hand key in the four row, is struck three times, because three is the
units figure of the multiplicand. Then strike the tens key of the
four line five times because the figure five is in the ten's place
in the multiplicand. Similarly, strike the hundreds four key twice
and the thousands four key twice. This multiplies the multiplicand
by four, and it remains to multiply it by 80. This is done by com-
mencing with the eight key in tens place, which is struck three
times, the hundreds eight key being struck five times and so on as
before, giving by this series of additions in the proper column the
correct answer 189252 on the registering wheels in front.

In addition and multiplication the black key figures are itsed,
while in division and subtraction the red figures only are recog-
nized in striking the divisor and subtrahend.

Division is performed by first striking the number to be divid-
ed on the keys, which causes this number to show on the register.
The divisor is then struck on the keys by the red numbers, count-
ing the strokes on each key by the numbers shown on the register
instead of the figures on the paper as in multiplication. There is
no guessing as to how many times the divisor is contained in the
partial dividend as in non-mechanical division ; all the steps are
positively indicated. The machine tells how many times to strike
each key, and exhibits the quotient after the keys have been de-
pressed.

Tn subtraction the number is first struck on the machine with
the black figures, always diminishing the subtrahend by unity, that
is, striking 53 for 54, 147 for 148, 240 for 250 (no cipher being
struck) and so on. Also, as no keys have the digit nine in red,
nine is never struck in subtracting. On the front of the machine
a row of "cut oflfs" is placed above the register, as shown in Figs.

THE COMPLETE COST-KEEPER.

377

i and 3; by manipulating these cut offs the carrying of any
column to the next can be stopped. These cut offs are used in
subtraction. Thus to subtract 262 from 4,286, push back the cut off
between the third and fourth columns and strike 261 in red charac-
ters, which will give 4,024 on the register.

There are other methods of multiplication, and the Compto-
meter can also extract the square root.

The methods employed in the operation of the Comptometer
are comparatively simple. The construction involves several

The Felt and Tarrant Comptometer.

schemes of a highly ingenious character. The first of these in-
volves a brake so applied to the register wheels that they cannot
move too far, and cannot move at any time except when they
should move, and are yet left free to move when movement is de-
manded. The second puzzle involves a system of gradually storing
power by successive small increments taken from preceding key
actions, so that this stored-up power is always available ?'^d is
automatically applied to assist the comparatively feeble finger ac-
tion of the operator on the keys when this stored-up power is
needed to operate a series of carrying wheels simultaneously.
As a matter of course the machine demands the highest grade

•78

THE COMPLETE COST-KEEPER.

Fig. 3. The Felt and Tarrant Comptograph.
of materials and construction throughout, and involves a great
many inventions of much subtlety and cunning.

Mr. Felt asserts that the Comptometer is the only machine
ever offered which adds more than one column at a time by a key
action alone, and the only machine which will perform addition
and division by a simple key action only, and that it is also, by
the action of the brake mechanism referred to, rendered both accu-
rate and durable at high speeds. Mr. Felt further says, in refer-
ence to the outcome of his own labors, and with some wholly justi-
fiable pride of achievement :

"To make a mechanism in which there are two positive stops
operating on one numeral wheel from two distinct mechanisms,
and not have the stop of mechanism interfere with the operation

THE COMPLETE COST-KEEPER. 379

of the wheel by the other mechanism, is not so simple a problem to
solve as it might appear at first glance, and to add still another
mechanism to effect the cancelling, again utilizing one set of the
positive stops, complicates the problem still more.'

All these things are accomplished on the Comptometer, by
what is really a much more simple mechanism than that in most
calculating machines which accomplish very much less.

The feature in which the Comptometer differs from ail other
adding and calculating machines, is in that the rotation of the
numeral wheels is limited by positive stops, positively engaging the
teeth of the numeral wheels, and effectively preventing their rotat-
ing too far, thus making the speed at which the wheels can be
accurately operated practically unlimited. In the Comptometer
which is operated by a short (9-16 inch) instantaneous key stroke,
a single key is often operated in regular work, such as multiplica-
tion at the rate of four hundred and five hundred strokes in a
minute, which turns the wheel three hundred and sixty to four
hundred and fifty revolutions in a minute, while in doing so, start-
ing the wheel from a dead stop, turning it 9-10 of one revolution,
and stopping it dead again from four hundred to five hundred
times in a minute.

Unless skillfully operated, the Comptometer is useless. In this
respect, nearly every other calculating machine has the advantage
over the Comptometer. On the other hand, when skillfully operat-
ed, it is from sixty per cent, to three hundred per ce^nt. more rapid
than any other machine in such other machines' own particular
specialty, under the most skillful handling. Most anyone who is
goine: to use an adding or calculating machine is going to use it
right along, and therefore that which is the most rapid and con-
venient after one is experienced in using it is the one which is the
best in the long run for any purpose; besides, all other machines
are impractical on all except very limited classes of work, no mat-
ter how skillfully handled.

The most distinct feature of the Comptometer is its universality
of application. No other machine will perform advantageously,
as compared to the mind, more than one or two classes of compu-
tations, while the Comptometer when skillfully operated, will beat
the mind of the most expert mental computer, and will heat any
other calculating machine on its own particular specialty.

38o

THE COMPLETE COST-KEEPER.

Allen's Double Entry Accounting Machine.

This machine was
invented, designed and
patented by Mr. Lei-
cester Allen, who is a
mechanician of distin-
guished ability, and
who was associate
editor of The EngiU'
eeriiig Magazine when
its first number was is-
sued, remaining in that
position for a consid-
erable period. Mr. Al-
len will be recognized
by many readers of
mechanical and scien-
tific newspapers and
periodicals as the au-
thor of valuable con-
tributions to the technical literature of his time.

There are more than three thousand separate pieces in the
machine here illustrated, and it is required to perform many dif-
ferent functions. It will seem almost incredible to most mechanics
that the very, first machine of this character ever constructed
should have performed all of its functions perfectly, and that,
put into operation more than three years ago, it should have con-
tinued in actual and active service up to the present date, with
every prospect that it will continue in use for many years to come.
More than three years ago one of these machines was placed
on trial at the Union Dime Savings Institution, Thirty-second
Street and Broadway, New York. After a trial of six months
duration, two more of the machines were ordered.

In the winter of 1899 a committee was appointed by the
trustees of the institution to investigate the usefulnese of the
machine and to consider the desirability of continuing its use.

The officers of the bank, the tellers, the depositors, the inven-
tor, patentee, and designer of the machine, the able mechanic who
constructed the machine from working drawings supplied by Mr.

THE COMPLETE COST-KEEPER. 381

Allen, the books of the depositors, and the books of the bank,
tvere all examined.

The result was a ref)ort wholly favorable to the machine, and
a reconmiendation that a fourth machine be purchased to com-
plete the outfit of the bank. This machine is aow building, and
will soon be delivered at the bank.

The president of the bank, in a letter which we are per-
mitted to quote, says:

"I consider the Allen Double Entry Accounting ^lachine a
very valuable invention. It insures desirable results which — with
less certainty, owing to human fallibility — could be attained only
by the employment of two special clerks."

(Signed) Chas. E. Sprague, President.

The requirements which the first machine was guaranteed to
meet were as follows:

(a) It must inscribe or imprint on the book of the deposi-
tor the year, month, day of the month, and the amount of money
received from, or paid out to, the depositor, the form of this
imprint being as follows:

"June 16, 1898, Received $**47.8^'*; the word "paid" to be
employed when payments are made, and thj word "received" to
be used when money is deposited.

(b) All places for figures to the left of the significant
figures to be cancelled by some arbitrary character. A five-point-
ed star is employed for this cancellation. 1

(c) Simultaneously with the printing of the depositor's
book, to make the entry for the bank, consisting of the number
of the depositor's book, and the amount credited or debited there-
on.

(d) To do this absolutely, that is, to provide mechanism
whereby it is impossible to print upon the depositor's book any
debit or credit without printing exactly the same on the bank
record.

(e) To insure :hat the operation of the machine shall not
absorb more time than was required by the inscription with the
pen.

(f ) To render it impossible, after the book has been placed
in the position for printing, that the book should be withdrawn
without being printed.

382 THE COMPLETE COST-KEEPER.

(g) To secure perfect vertical and horizontal alignment,
and perfect clearness and elegance in the printing, the printing
to be done by a steady impression, not a blow.

(h) To ink only the type used in printing, and those only
just before the impression is made.

(i) To indicate to the operator before printing whether
or not he has made any error in manipulation, and, if so, enable
him to correct such error before making the imprint.

(j) To supply a keyboard and key-mechanism such that
the setting up of the inscription need not require the successive
operation of keys, as in a typewriter, but permit the operation of
a number of keys sinuiltaneously, as keys are operated simultane-
ously in sounding a chord on a piano.

This requirement has been so completely fulfilled that an
inscription like the following: —

"Jan. 31, 1897, Received $1,233.44," can be imprinted on the
depositors book, while a book number "543,121," as likewise the
amount, $1,233.44 can be imprinted on the bank record, by two
simultaneous manipulations of keys which take no more time than
would be required to strike twice two different chords on a piano
Iceyboard.

(k) To provide means whereby when the book is placed in
the machine in position for printing, the machine shall automati-
cally print it and positively stop its movement at the instant after
the imprint,

(1) To supply an adding mechanism, capable of registering
a total of $999,999,999.99, and capable of continuous opera-
tion, adding each deposit or payment to a previous grand total,
so that differences in the totals of payments and receipts can be
at any time determined by a simple subtraction of the former
from the latter, thus obtaining at any time a trial balance in a
few seconds.

(m) The machine not to disquiet the ear by noisy operation.

(n) The machine to be strong and durable, requiring only
occasional attention to secure its perfect operation.

(o) The machine to occupy a moderate space, and to be
capable of movement from place to place on the bank floor as may
be required.

THE COMPLETE COST-KEEPER. 383

(p) The machine to present a neat and ornamental ap-
pearance in its desig^.

(q) The record of the bank to be under lock and key so
that it cannot be tampered with by any one during the progress
of the record.

(r)The adding mechanism also to be under lock and key, but
so arranged that its totals are constantly visible.

(s) The machine to be provided with mechanism whereby
it can be operated by hand when its ordinary motive power, de-
rived from an electric motor, small gas-engine, or small water-
motor, is not available.

These essential requirements, and others not considered as
absolutely essential, but highly desirable, have been met by a
series of unique, original, and ingenious mechanical devices,
which render the machine one of the most remarkable of modern
appliances for use in the art of accounting.

In use, the depositor hands into the teller's window his book,
the money he wishes to deposit, and a ticket stating the amount
of the deposit ; or if he wishes to draw money he hands in his
book and the check for the amount he wishes to draw. The teller
then rapidly manipulates the key mechanism, places the book in the
book-holder and slides the latter into position for printing. The
impression is then immediately made. The average time of the
entire operation is about twenty seconds.

The entries on the bank record are made on a paper tape,
giving the number of the depositor's book and the amount, and
the tape being locked in, the figures cannot be tampered with by
any person except the cashier or some one to whom he may per-
mit the use of the key.

This tape is removed at the end of the day, and. being sys-
tematically gummed, in columns, upon the pages of a bound book,
remains the original and permanent record of entries, no pen
writing being needed or allowed in keeping this record. Being
ink-printed, the figures are plain, perfect, and in direct alignment.
This permanent record is convenient, absolutely accurate, and
every way acceptable.

The machine may be operated by a small gas-engine or an
electric motor, or by a small water-motor, or by hand, very little
power beirg required, and the following results are insured:

384 THE COMPLETE COST-KEEPER.

1. Absolute coincidence of entries in depositors' books and
the first entries on the bank record, the personal factor being
eliminated.

2. An ever-present facsimile of the entries in every depo-
sitor's bank-book.

3. Perfect legibility and alignment.

4. Saving in time and clerk-hire.

5. Convenience in being able to verify the cash-account in-
stantly at closing hour, or to trace any errors that may have
occurred to the exact depositors' accounts wherein such errors
have been made, at once, instead of, as heretofore, waiting for
the book wherein an erroneous entry has been made and inten-
tionally or carelessly taken away by a depositor, to reappear at
the bank before the error can be located.

6. For the first time in the history of banking it is now
possible for a bank inspector to know what the tellers of a bank
have made the bank liable to pay by what they have entered in
the depositors' books. Hitherto an inspector has been able to see
only the records of the bank, not the records in the books of its
depositors, and the latter may show, and sometimes have shown,
liabilities in excess of what is indicated on the books of the bank,
the excess having been appropriated by a defalcator. The exact
conicidence of entries compelled by the use of this ingenious ma-
chine is therefore a new and important safeguard in the business
of banking.

All that is necessary to apply this machine to the use of na-
tional banks is the numbering of the accounts. This done, depo-
sitors' books are treated in the same way as the books of depo-
sitors in savings banks, while all vouchers, checks, drafts, notes,
etc., will have the number of the account to which they are to be
charged printed or stamped upon them prior to their presentation
for payment, and will then be treated in the same way as the
depositor's book at a savings bank, that is to say, the inscription
of date and amount paid upon the voucher by the paying teller
will be imprinted upon the voucher, and simultaneously therewith
the number of the account and the amount debited to it will be
printed upon the primary record of the institution.

THE COMPLETE COST-KEEPER.

385

The Adder, Webb's Adding Machine.

The Adder is an instrument for adding one, two or three
columns at a time, the total amount appearing in a space on the
face of the machine, where it can be easily read.

As shown in the accompanying illustration, this machine con-
sists of two metal disks, joined together, about two and four
inches in diameter, respectively, the larger one for units and tens,
the smaller to be used when three columns are to added. The
method of operation is as follows : The zero on the inner revolv-
ing part of the disk is brought opposite the zero on the outer part.
A point, or pin, is then inserted in the small hole opposite the
figures corresponding to the first number to be added, and the
inner disk turned in a clockwise direction until arrested by the stop
at the outer zero mark. The same process is repeated for all the
succeeding numbers, and the sum total appears in the slot between
the large and small disks. When three columns are to be added,
the small dial is used for the hundreds and the large one for tens
and units.

This machine is sold by E. R. Beach.

WORKMEN'S TIME RECORDERS.

The Rochester Card Recorder.

The principal feature of the Rochester Time Recording Sys-
tem is the clock with its recording mechanism. The clocks used
have the best movement that can be made, and their reputation as
time-keepers is world-wide. The clock-case is ornanitiital and is
made in the most thorough manner, and in its lower part is the
recording mechanism, which is very simple and contains nothing
that will get out of order with anything like fair usage. The print-

The Rochester Card Recorder.

ing wheels are engraved out of solid steel, and are practically in-
destructible. The mechanism is automatic, and the clock requires
winding only once a week.

On either side of the clock is a rack with numbered pockets,
each pocket representing a workman. At the beginning of the
week, cards are made out, bearing not only each person's number,
but also his name, and are placed in one of the racks, which is call-
ed the "out" rack. These cards serve for the entire week.

Upon his arrival each employee takes his card from the *'out"
rack, drops it into a slot in the lower front of the clock-case, and

THE COMPLETE COST-KEEPER.

387

Week ending^\fk<^<^ ^ ^189^

No. 239

Name.

.jJAf^jAi^^j:^^

Day

Lu8T TIME

Out

Total

OUT

A.M.

61:

12?°

P.M.

A.M.

6fl

P. M.

61?

A.M.

121

P.M.

L_i_JJill

%/>

A.M.

6 S3

1 121

P.M.

121?

! ei

A.M.

7??

_J !123

//^;C

P.M.

A.M.

611

121

P.M.

1^;

A.M.

P. M.

Toial Time,

J~ V- hrs.

Total wa^ for week, ,

?._.y.v

sno^*

nvtr^eco^

w^ot

iHt

Rochester Card.

Rochester** and *• Bundy

124

♦12

*12

124

*12

*-]2

124

* 6

124

INTERNATIONAL
TlrttRtCORDINOCO.

NCW TORK

Records.

388 THE COMPLETE COST-KEEPER.

pushes down a lever at the lower right-hand corner of the case
until a bell rings. By this operation the printing- wheels are
brought into action, and the exact time is recorded in the proper
space on the card, which is then taken out and deposited in its
proper place in the opposite, or "in" rack. The record can thus
be verified each time by the employee as soon as it is made, and
as the line of workmen is constantly and rapidly moving from one
card rack to the other, very little time is occupied in registering.

Whenever a workman leaves the factory, he takes his card
from the **in'' rack, registers at the clock and places the card in the
"out" rack, so that this system, besides giving an exact record of
the times of arrival and departure, enables any one, by glancing at
the racks, to ascertain if a workman is in or out of the shop.

The bottom of the slot or card receiver in the clock-case rises
automatically one space on the card every twelve hours, so that the
card will drop only to its proper space, thus making it impossible
for a person who is absent any part of one day to record the lost
time the next day.

The cards thus stamped form a permanent record in them-
selves, and at the end of the week are filed away where they can be
referred to instantly when wanted. This system requires no trans-
ferring of records, thus guarding against errors and making a
great saving of labor in the office ; and the workman's record is so
easily examined by his employer that there is a great promotion of
promptness and regularity. The card system is so elastic that there
is no record that a person desires but what may be made on this
machine. For keeping cost, the card furnishes one of the best
records that can be had. For doing this, a card is used for each
job worked on, and on which the workman records the time that
he begins and quits the job each day. At the end of the day, there
is a card for each operation and the total number of hours on the
several cards must equal the amount of time recorded on the weekly
ticket.

People who are using this system for this purpose claim it to
be the simplest, the most accurate and reliable way of getting cost
it is possible to devise.

This apparatus is manufactured by the International Time
Recording Company, of New York.

THE COMPLETE COST-KEEPER,

389

The Bundy Time Recorder.

With the Bundy system, the record is made on a paper ribbon
contained within the clock-case, and the registering mechanism is
actuated by inserting a key in a hole in the lower part of the case
and giving it a quarter turn.

Each employee is given a numbered key, which, at the begin-
ning of the day, hangs upon the "out" rack placed at one side of
the clock. When the workman arrives in the morning he takes

tJttJJJHJ

tttttmn

ttttitJt?

The Bundy Time Recorder.
his key from the "out" rack, inserts it in the proper place in the
recorder and gives a quarter turn, thus registering the time and
his number on the paper ribbon within the case. He then haiigs
the key on the "in" rack, on the opposite side of the clock.

When he goes out, he takes the key from the "in" rack, regis-
ters, and hangs it on the**out" rack, but while registering, the
lower lever at the left of the clock is held down, thereby printing
a star opposite the figures showing the time of departure.

At each registration a bell rings, which attracts attention at
once to the act of registering, and as this would be distinctly heard
by the employees going to and fro from the recorder, any attempt
on the part of a workman to register for another would be frus-
trated.

The time recorders, one of which is shown in ihe accompany-
ing illustration, are placed at convenient points near the entrances
to the factory, or in the departments where the employees work.

390 THE COMPLETE COST-KEEPER.

In the latter case the record can be made of the time when the
men actually begin and finish their work, thus saving the time that
is lost in going from the entrance to the place of work.

The printed record, which is accessible only to the person
having the key that opens the clock, may be taken out every night,
or as often as desired, and from it the actual time of service of
every employee noted on the time book.

It may, perhaps, be mentioned that among the other large
establishments using the Bundy Time Recorder is the Post-Office
Department of the United States, and carriers and clerks in all
free delivery f>ost-offices throughout the country have their time
kept by this system.

The Bundy Time Recorder is manufactured by the Interna-
tional Time Recording Company, of New York.

Thf Standard Automatic Time Stamp.

The Standard Automatic Time Stamp is, in appearance, like
a mantel clock, with a stamping arrangement on top. Anything
on which the time is to be marked is simply placed on the printing
wheels and the stamp is then pushed down. The impression is
clearly made in plain type and in straight lines, and the correct
current date and time, down to the minute, is printed.

Besides the date and time, the stamp can be made to record
the name of a firm or company and its business address, and six
words (such as "answered''), describing particular transactions,
can be brought into use by turning either of tw^o projecting knobs.
The figures and letters on the six wheels of the stamp train are
engraved in the solid metal, which secures a superior impression
and great durability.

The time mechanism is entirely separate from the printing
wheels, and cannot be afifected by any amount of use. The month,
day and time are set automatically at the proper moment. This
includes the automatic setting of the first day of a new month for
a long or short month, and even for February of a common and a
leap year.

The type wheels are continuously and positively locked, which
absolutely prevents their being tampered with by unauthorized
persons, or shifted w-hile the impressions are being made. The
mechanism requires no attention but winding once a week.

The Standard Time Stamp is manufactured by the Interna-
tional Time Recording Company, of New York.

THE COMPLETE COST-KEEPER,

391

The Chicago Time Recorders.

The Chicago Time Register Company manufacture both a
numerical (or key) and an autograph recorder. Their distinctive
feature is the sight opening, where the record appears to view the

instant a man registers. The re-
cords are made on a strip or ribbon
of paper in the clock case, but at
tlie moment of registering, the
time is printed in plain view- oppo-
site an employees's name or num-
ber. This does away with all dis-
putes about time, for should a
workman question the correct-
ness of the time credited to him,
the bookkeeper can show the
record made by the workman him-
self, and inspected by himself
when it was made.

An even more important result
is that with the Chicago Recorder,
every workman becomes a check
on the accuracy of the machine
and its proper operation, so that
an erroneous record made because
of any failure of the machine
whatever, is certain to be at once
detected, and may be corrected. If,
on the contrary, the record be hid-
den within the clock case, any
errors would most likely remain
"undiscovered until the end of the
day, or even the end of the week,
when it would be impossible to
to correct them. These recorders,
then, produce an absolutely indis-
putable and legal record. The manner of operating the Chicago
recorders is very simple.

The numerical, or key recorder, is operated by inserting a

392 THE COMPLETE COST-KEEPER.

numbered key, each workman having his special one, and giving
it a slight push, when the bell rings and the record appears in full
view. They key need not be turned, which operation would take
time and might cause trouble. On either side of the recorder is
placed a key board, denoted, respectively, the "out" and the "in"
board. Upon his arrival, the workman takes his key from the
"out" board, registers, and hangs it upon the "in" board. When
he goes out, the key is transferred, by way of the register, from
the "in" to the "out" board, so that a glance at the boards will tell
whether a man is in or out.

The autograph recorder requires the employee to sign his
name on the record sheet, which appears in a space in front of the
lower part of the clock case. The wrist support upon which he
rests his hand when writing his name is thereby lowered, and, after
the writing is finished and the hand withdrawn, automatically
prints the time opposite his name, in full view. There is no lever
of any kind to turn in order to register.

As a result of this simple manner of operation, these machines
register with great rapidity. The material used in their construc-
tion is the best of its kind; the clock movement being the Seth
Thomas.

Employer's Time Recorder, Morse System.

This time recorder consists of a regulator clock, with the re-
cording mechanism in the lower part of the case. There are no
keys used, but on the front of the clock are numbered knobs, one
for each employee, which the workman turns halfway round
when he enters or leaves. This turning of the knobs punches a
hole in the record sheet.

This machine is time-saving, because the workmen can regis-
ter while passing and without pause. Six, eight or ten persons
may record simultaneously going both ways, if desired.

The position of the knobs on the face of the instrument always
shows at a glance exactly who is in and who out, and the record
may also be seen on the paper without opening or touching the
machine.

Whether it is designed to use one of these machines in each
department of the establishment, one for each building, or all of
them at the entrance, does not matter, as any arrangement that is
most convenient can be made. It would take five machines to

THE COMPLETE COST-KEEPER, 393

The "Morse" Employer's Time Register.

394 THE COMPLETE COST-KEEPER.

record one thousand people, and a thousand could register just as
quickly as a hundred, for the machine will not delay them. In
actual service, one of these machines has recorded 96 people "out"^
in 46 seconds.

Of course employees do not arrive and depart in the order of
their numbers, but the record comes out as though they registered
in I, 2, 3 order, so that it is the work of an instant to note the late
or absent ones.

The record of a day for the entire force appears upon the
sheet like a ledger page, showing the exact time of arrival and
departure of each employee opposite his own number, without any
copying whatever, so that a daily pay-roll for 500 employees may
be made up in fifteen or twenty minutes. The record is at once
so compact, simple and complete that the manager or proprietor
may himself check off the pay-roll, or gain information about the
promptness, absence or lateness of any employee at a glance.

This recorder is manufactured by the American Watchman's
Time Detector Company.

The Burroughs Registering Accountant.

The Burroughs Registering Accountant is a machine for
printing columns of figures, and adding them mechanically.

The operation of the machine is simple. The keys being ar-
ranged in regular order from i to 9 in each column, and there being
but nine different characters or figures, no such difficulty is ex-
perienced as in learning to operate a typewriter. The keys corres-
ponding to the amount to be recorded are struck, and the actual
printing on a sheet of paper at the back of the machine is then
done by pulling the lever at the side. The increasing total of the
columns is progressively registered in the machine, so that when
it is desired to find the sum of the figures at any point, an extra
key is pressed and the total amount recorded at the foot of the
colunms.

Errors on the part of the operator in striking the wrong keys
will be noticed instantly, as the keys when struck remain down
till the lever is pulled, thus affording the operator an opportunity
to be certain the proper keys are down before the amount is print-
ed. If anv kevs have been struck in error, the correction can be

THE COMPLETE COST-KEEPER.

395

made before printing. The keys may be struck in any order, and
any number of keys at the same time.

The parts of this machine are all interchangeable, and there
are no adjustments of any kind, so that new j^arts may be sub-
stituted for worn or broken ones by any mechanic of ordinary
ability, and repairs can easily be made.

This machine is made by the American Arithmometer Co.

The Dey Time Register.
The Dey Time Register Company manufactures a form of
time recorder, as shown in the accompanying illustration. This
machine is extensively used in many important establishments, es-
pecially in connection with department work : the machines being
placed in the work rooms, and thus recording the time of actual
appearance of the employee at his work, and not his mere entrance
at the gate of the establishment

396

THE COMPLETE COST-KEEPER,

The Pkentxe Synchronizing System.

For many purposes it is desirable to have a number of clocks
maintained at exactly the same time, and for this service the Pren-
tice system has been devised.

The illustration shows a plant of four synchronized clocks,
two with calendars and two without. The large clock on the left
is a regulator and acts as a master clock. The three other clocks
are sub-clocks and are synchronized every hour by the master
clock. It will be seen that all the clocks are connected in series,
that is, that the wire runs to each in turn and then to the battery
and back again to the master clock. The clock-movement in the
right hand lower corner shows a synchronizer attached to it. As
will be seen, it consists of a lever and detent adapted to be drawn
down by means of the electro-magnet, the detent when down en-
gaging with a toothed disk mounted on the arbor of the escape
wheel and in this way causing the train of the clock to stand still
though the pendulum continues to swing. The hour arbor of the
clock carries a cam. one-half of whose circumference is somewhat
less in diameter than the remaining portion. When the larger

THE COMPLETE COST-KEEPER. 397

portion is opposite the lever-arm, the latter is completely blocked
so that no action of the armature of the magnet can take place and
the detent cannot be made to lock the train of the clock. This
position indicates a slow clock ; but when the reverse side of this
cam is opposite the lever arm, the armature is free to move, and if
the magnet be energized now, the detent will be brought down so
as to lock the wheels of the train and stop the clock for a few
seconds. It is this cam on the centre arbor of the sub-clock which
determines whether it shall be held one second, or ten, or shall
not be stopped at all. When a sub-clock is correct and needs no
synchronizing it will be seen that the passing of the cam from the
high to the low part, and the consequent releasing of the lever
which permits the armature to act, is simultaneous with the open-
ing of the circuit by the master clock and that therefore no effect is
produced. Should the sub-clock, however, be the least particle
fast, it will reach the full hour first, the high part of the cam will
have passed by and the magnet w-ill then have a chance to act.
The detent is at once forced into the toothed disk, the motion of
the train arrested and the hands of the sub-clock stand still, indicat-
ing the full hour, and remain so till the master clock has reached
the exact hour and has broken the circuit. The synchronizer then
unlocks and the sub-clock starts off exactly with the master clock.
The Self Winding Clock Comp.\ny's Programme Clock

This programme instrument is operated by a self winding
clock movement, which is arranged with contacts to move the
cylinders in the programme instrument, and close an electric cir-
cuit for ringing signal bells. The cylinders are arranged with
holes, corresponding to every minute of the twenty-four hours,
into which small plugs are screwed to conform with the pro-
gramme it is desired to ring.

By a simple arrangement the instrument is made to run quietly
during the night, taking up the day programme each morning at
a predetermined time. An attachment may also be provided for
ringing an entirely independent programme on any day of the
week, without changing the arrangement of plugs each time. All
this is done automatically.

The apparatus is simple in construction and all its parts are
interchangeable. The bells may be rung at intervals of one
minute or less, and the programme may be readily changed, as

39S THE COMPLETE COST-KEEPER.

often as desired, without in any way interfering with the clock
movement.

A high grade regulator may be used to operate the instrument,
tliereby combining a fine regulator and programme clock.

Prick's Automatic Programme Clock.

This clock has a mechanism by which signals are made in
various parts of an establishment according to a pre-arranged pro-
gramme.

The clock itself is a high grade time-piece, and the programme
apparatus is mounted below the clock dial, where it is readily ac-
cessible for setting and changing the programmes. It has its own
motive power, and by a simple device is governed by the regulator,
thus leaving the latter unincumbered with any mechanism to im-
pair its time-keeping qualities. No delicate or complicated parts
are used. The programme apparatus is provided wath contact
pieces which complete electric circuits at stated times and so send
out the signals which are rung on bells at any desired points. The
current is furnished by electric batteries. This apparatus can be
set up and easily altered as required.

As there are different classes of programme signaling, these
clocks are furnished in several varieties, each kind being adapted
to a particular classs of work.

There is the multa-programme clock, which gives different
programmes in different rooms, departments or buildings at the
same time, each programme having its periods set without refer-
ence to the others, and on any periods divisible by five minutes —
though special apparatus will be furnished whose periods are divis-
ible by two and one-half minutes.

The periods of all programmes may be changed whenever
desired, and changing the periods of any programme does not
affect the other programmes. The various programmes are each
rung on a separate bell or set of bells, the different bells or sets
being placed in the respective departments they are to regulate.

An automatic cut-out silences the bells at night, and from the
close of the week's work until Monday morning, wdien the clock
automatically takes up another week's work. It can be set to
silence the bells on any days and nights of the week and to ring
them on particular days only. The duration of signals is regu-
lated in an instant to meet all practical requirements. When re-

THE COMPLETE COST-KEEPER.

39*3

quired, there is furnished, instead
of the automatic cut-out, a hand
cut-out which must be moved
every evening to silence the bells at
night, and again in the morning, to
make them operative. A cut-out
can also be placed in each room,
by which the signals there can be
thrown in or out of circuit, at will.

The automatic calendar switch
clock is used where the pro-
grammes vary from day to day.
The programmes for the different
days are set independent of each
other and can be changed when-
ever desired.

These clocks are furnished ei-
ther key or self-winding.

The Frick programme clock
may be fitted with a circuit closer
for operating secondary clocks
once every minute. Any number
of secondary clocks may be thus
operated in unison with the regu-
lator, securing uniform time
throughout the plant. With this
apparatus there is an electric gauge
and a detector clock. The elec-
tric gauge shows the condition of
the current once every minute.
The detector clock runs in unison
with the regulator and secondary
clocks, but is so constructed that
it requires a slightly stronger
current to operate it than is
needed for the secondary clocks.
When the current weakens, but
lie fore growing weak enough to
cause failure of any of the second-
ary clocks, the detector clock will

400 THE COMPLETE COST-KEEPER,

stop, indicating that the battery should be looked after. In addi-
tion to the electric gauge and the detector clock, an alarm gong
is placed under the regulator dial and strikes every minute after
the detector stops, thus giving audible notice of the condition of
the current, so that with the regulator fitted in this way it is
almost impossible to have a failure of the system. The simple
battery furnished for operating the secondary clocks will run for
over a year with one charge.

The Self Winding Clock Company's Synchronizing System.

While the clocks of this company, by reason of their method
of regular and uniform winding, are most accurate time-keepers,
in order to secure absolute unifonnity of time between any num-
ber of clocks, they are connected in circuit with a standard or mas-
ter clock, which, at predetermined intervals, sends a signal that
temporarily controls the hands of all clocks in the circuit. To
secure the correctness of this time, the master clock is connected
with the Western Union Telegraph Company's time service system,
and corrected by the signal sent out daily at noon from the United
States Naval Observatory at Washington.

This system embraces the Gardner synchronizing and time
signalling patents.

The Eco Magneto Watchman's Clock.

In this system, the watchman's recorder, either alone or in
combination with an "office regular" clock, is placed in the office,
and stations are located at such points throughout the building
or premises as the watchman is required to visit.

In the recorder, a circular dial of paper, divided by radial
lines corresponding to hours and fractions, is carried around by
clockwork. The dial is also divided into rings by concentric cir-
cles, each ring corresponding with a station. Any number of
watchmen can record at the same time and on the same dial, and
each man's record will be independent of the others.

The records are made by means of needles actuated by electro-
magnets. These electro-magnets are all independent, and each is
in circuit with one of the stations. Number i station is connected
to the magnet which operates number i needle, and the record
will be a puncture through the paper in ring number i at the time
the magneto at the station is operated. Station number 2 will re-

THE COMPLETE COST-KEEPER.
II

401

cord in ring number 2, and so on for as many stations as may be
used.

At each of the stations is placed a small magneto-machine,
similar to those which are put on telephones to ring the bell. When
the watchman inserts his key in the case enclosing the magneto,
and gives it one full turn, he makes the armature of the magneto
revolve very rapidly. This generates a current which energizes
the corresponding electro-magnet at the recorders, and the needle
thereupon perforates the paper dial.

This method of operation dispenses entirely with a chemical
battery, which latter, besides being an annoyance, is a source of
exp)ense in replenishing and keeping in order.

With the Eco magneto system there is no chance of manipula-
tion by unfaithful watchmen, for the vibratory motion of the per-
forating needle could not be imitated by hand, even if the watch-
men should gain access to the clock ; nor can any short-circuiting
or crossing of the wires make a record, as there is no current on
the line except at the time when the magneto is turned.

402

THE COMPLETE COST-KEEPER.

The watchman's records can therefore be made only from
the several stations, and in no other way.

The apparatus which has just been described is manufactured
by the Eco Magneto Clock Company.

The Acme Watchman's Time Detector.

In this system, which is manufactured by the Holtzer-Cabot
Electric Company, the record is made upon a paper dial by needle
points. A separate electro-magnet is in circuit with each station,
and when energized causes its corresponding needle point to punch
a hole in the dial. The dial revolves bv clockwork and is renewed

THE COMPLETE COST-KEEPER.

403

every day. This system can be operated either by magneto stations
or by batteries. The former is recommended.

The clock cannot be tampered with ; for a mechanical device
maices a registration on the dial each time the door is opened or
closed.

It has been found disadvantageous to operate more than
twenty-five stations uf)on one movement, so that when more sta-
tions are required, which may be the case, especially when several
watchmen are employed, the stations are sub-divided, and two or
more dials are used.

These time detectors are furnished with a register dial only,
or with a regulator time-piece also, as shown in the accompanying
cut.

The punch points or needles are mounted independently of
the lever arms, and each is enclosed in a small brass tube contain-
ing a spiral spring, which brings it back from the dial after it has
been forced through the paper in making a registration. The
lever arms which strike the punch points are accurately balanced.

The Emerson Time Stamp.

The Emerson Time Stamp is a clock with a rubber stamp on
the back end in counterpart of the dial and hands on the front
end. The hands on the printing end are connected with the clock
center in the same manner as are tlie hands on the face of the
clock. The former are therefore always moving in unison with

404

THE COMPLETE COST-KEEPER.

2he hands in front, so that whenever you take up the clock, ink
the back end upon an ordinary ink pad and presss it lightly upon a
paper, you will have printed an imitation of the clock face, indi-
cating the hour and minute of time.

The pressure required in the operation of printing is very
gentle, but no matter what amount of pressure may be used, it
can do no injury to the clock, as in the mechanism provision is
made to intercept any pressure, be it great or small.

This time stamp records the year, the month, the day, the
hour and the minute of any transaction or occurrence. The name
of owner will be placed in the border of the dial and made a part
of the printing face of the stamp, if so desired.

The Emerson Time Stamp Company are the manufacturers
of this appliance.

"■National'" Electric Watchman's Clock.

The special feature of the watchman's detector system manu-
factured by the National Electrical Manufacturing Company is

THE COMPLETE COST-KEEPER. 405

the double registry of the watchman's visit to each station, first,
at the station itself, and second, on the dial of the clock; one
registry being a check against the other.

In case of an accident to the wires which would prevent the
clock from registering, or in case of the stoppage of the clock, the
boxes will show the number of visits of the watchman.

The clock will record the visits of the watchman for seven
days, without attention or the change of the registration dial.

The station boxes do not require any special attention ; they
may be inspected every week or only once each month, as circum-
stances may require. They are constructed entirely of metal, and,
if carefully placed, would indicate after a fire whether or not the
watchman had faithfully performed his duties, even though the
clock had been destroyed.

Inside the station box are four dials, with pointers, which
register the number of visits, up to io,(XX), made by the watch-
man, while the dial on the clock records both the number of visits
and the time of each visit. The number of the visits on the clock-
dial should, of course, correspond with the sum of the numbers on
the box dials, if the watchman's rounds have been faithfully made.
There is no complicated mechanism to ^et out of order. The
electrical machinery and circuits are of the simplest kind, but
one magnet being used for one or twenty stations.

The Elliott and Hatch Book Typewriter.

The Elliott and Hatch Book Typewriter will write in bound
books of every description, regardless of their dimensions; and
will, besides, write upon single sheets of paper as well as an ordin-
ary typewriter.

In this machine the writing surface upon which the paper lies
is perfectly flat and stationary. The writing mechanism moves over
the surface. The operator has complete control of the writing
point and can convey it over the writing surface almost as easily
as he can a pen. A very simple device lowers the writing point to
accommodate a single sheet of paper or the thickest book manu-
factured.

No special book is required for this typewriter. Any ordinary
book, with any kind of binding, may be used with success. The
machine is made in five sizes to accommodate all sizes of books.

4o6

THE COMPLETE COST-KEEPER.

The Book Typewriter.

The writing plate, or platen, lies underneath the leaf of the

book, and the frame upon which the writing mechanism is placed

holds it firmly in position. The type bars strike downward upon

this solid, flat surface, and from fifteen to twenty copies can be

Book Typewriter with Tabulating Attachment.

made upon manifold paper without increasing the force with
which the key is struck.

The accompanying illustration represents one of the larger
sizes of the typewriter equipped with the tabulating attachment.
This machine writes a line twenty-one inches long, and the tabula-
tor admits of any number of columns being written. The carriage
jumps to the desired column automatically. This attachment can
be applied to all sizes of the machine, which are manufactured by
the Elliott & Hatch Book Typewriter Company.

THE COMPLETE COST-KEEPER,
The Calcl'lagraph.

407

The calculagraph is an instrument which makes a mechanical
calculation and a printed record of the net result.

As illustrated in the accompanying cut, it is designed to com-
pute and record elapsed time, and also the value of elapsed time ih

dollars and cents at some fixed rate
per hour. The elapsed time record
may be made in minutes and frac-
tions of a minute, in which form ii
is peculiarly adapted to telephone
service, in recording the time of
conversations; or it may be made
in hours and minutes. In the lat-
ter form it has a maximum capacity
of twelve hours and is well suited
for a variety of purposes, being c(
great use in every place where
labor is employed and paid by the
hour.

The dollar and cent instru-
ment, or that form of the calcula-
graph which computes the value of
elapsed time and prints the result in dollars and cents, with a
minimum record of one cent, and a maximum of twelve dollars,
can be geared to calculate at any rate per hour from ten cents to
two dollars. It may be used to prcKluce vouchers for the pay roll
of workmen who are paid for the number of hours employed, c«-
some uniform rate per hour.

The calculating instrument is also provided with an auxiliary'
attachment in the form of a time stamp, which will print the time
of day as shown on the visible dial, in addition to the result of the
calculation above described. The operator may with this attach-
ment print the time of day a workman commenced and the time he
finished work, as well as the amount of his earnings, and thus the
employer will be supplied with data to settle all disputes which
may arise as to the accuracy of the latter record.

The calculagraph is constructed of the best materials and is
substantia] and durable. It is 8J inches in diameter and 5 inches

4o8 THE COMPLETE COST-KEEPER,

high, and is furnished in several forms: In a portable case, as
shown in the illustration ; or fitted with a flange and adapted to be
supported in an opening in a counter or bench, with its top flush
with the top of the counter; or mounted upon a pedestal, adjust-
able in height, with a base which can be screwed to the floor. The
clock contained in the calculagraph runs eight days, has a visible
dial, and is accurate and reliable.

The printing mechanism is operated by means of two levers at
the top and requires no special skill. Any person competent to
insert a ticket in the slot and pull the levers may work it. The
operation is entirely noiseless, and is accompanied by no pound-
ing or jarring of the mechanism. The number of separate calcula-
tions and records which may be made on a single instrument is
limited only by the number of times it is possible to insert tickets
in the slot and pull the levers. The completion of the record is
correctly made on each ticket without reference to the order in
A'hich the records were commenced.

IINDEX.

Accessibility of card records, in-
stant 347

Accountant, his mind and con-
science 360

Accounting without accountants,

vi; card system of 345

limit to its useful subdivision, . 361

Accounts, manufacturing divided

from selling 34

schedule of (76 divisions) . . .174-189
presented graphically 343

Accuracy of Tel lef sen's card-sys-
tem 49

of store-room records 307

Acme Time Detector, illustrated . . 402

Active assets, form 193

Adding Machine. Webb's, illus-
trated 385

Address card, form, 316 ; memor-
andum, form, 271 ; slips for
vouchers, 245

"Adjustment" of workman's time
record 364

Advertising, its expense, 353; what
it includes. 200.

Aggregation of daily totals of work

and repairs 71

Allen, Leicester, mentioned, and
his double-entry accounting
machine, 380 ; his machine
meets more than twenty re-
quirements, 381 ; and is a
safeguard against bank defal-
cation, 384.

Alphabetical record of workmen 309

Amberg letter-files 76

Ambiguities ifi use of certain terms 14

Analysis of factory records, how
valuable 292

Analysis or distribution sheets,
306 ; analysis sheets, 309; de-
pfirtmcntal, 348.

Apportionment of expense, when
correct 19

Ashes from coal consumed, facts
fl"*'^ 292

Aisc! partment 67

Asset ■ new tools 43

Assistant Superintendent and his
functions 55. 57. 60, 69, 191

A utomatic numbering machine.
65 ; time stamp, 390 : pro-
gramme clock, 369; Prick's
programme clock, 398 ; same
illustrated. 399.

Babbage, Charles, his calculating

machine 372

Balances on ledger cards, how ex-
tended, 307 ; variations of. 308.

Baldwin, of St. Joseph, his calcu-
lating machine 373

Bank defalcation, a safeguard

against 384

Basis of general expense division 190

Bates, his automatic numbering

machine 65

Best form of any machine product 354

Billing for the month, form 265

Bills payable, book form, 149; bills
receivable, book form, 162 ;
bills discounted, how account-
ed, 160.

Blank cost-cards 85-91

Blank, importance of its precise
form 84

Blank order forms, how vitalized

23. 25, 143

Boiler-shop, its boiler-production
order forms, 80-91; its general
production order forms, 91-94;
its lalx)r cost form, 128.

Book of instructions to foremen,
277 ; contents in part 278-284
returnable to Superintendent,
278.

Books used in Foote System, 3^ ;
in De Laval System. 78 ; in
Struther's, Wells & Co.'s
System, 85 ; in Hansel S>Ti-
tem, 211 ; in Gunn Sy&lem,
311; their inexpansible nature
for cost -accounts, 346.

Book Tyj>ewriter, BClliott and
Hatch's. 405; same illustrated,
406.

Boy sorting shop>scrap as an ex-
ample 197

Branch department inquiry form 130

Breakage and repair of work-pro-
ducing tools • 18

INDEX.

Buildings, record of and deprecia-
tion of 232

Bundy'sTime Recorder, 3S7; same
illustrated, 3S9.

Burroughs Registering Account-
ant 394

Bushing card form 46

Cabinet for reference-slips, illus-
trated 124

Calculagraph, illustrated 407

Calculating machines, their use
extending. 368 ; Pascal's. Bab-
bage's, 372 ; Baldwin's,
C"»rant's, Odhner's, Tate's,
Thomas's. 373. (See Com-
puting nachines.)

Callers, memorandum of, form. . , 272

Cards, how they may be used vi ;
for factory records. 1 1 ; passed
between departments. 144 :
issued for each detail of work
made, 145 ; storage of, 297 :
bearing related records, 305 :
their classification, 350.

Card and book forms, De Laval
System, 55, 56, 58, 59, 64-73,
80. 81.
Foote System. 21-26.
Gunn System. 313, 315-318,

320-329, 331-340.
Hansel System, 214-234, 236,
24 1 -246,' 249- 267. 269-275, 285-
290.
Struther's. Wells & Co.'s Sys-
tem. 86, 87, 89-113, 115, 117-
119, 121, 122, 126, 128, 130,
132, 136-141, 148-150, 152-154,
156, 158, 162, 163. 165, 167,
169-172, 174-189, 192-194.

Card Accounts, their privacy 41

Card-filing Cabinet, illustriiled. . . 268

Card Forms, their economical

limit unfixed 38

Card Recorder. Rochester, de-
scribed and illustrated 386-7

Card Records, their collective

value :.. . 345

Card Records, their classification 350

Card Register, book form, 113;
described. 114.

Card System of Accounting,

paper by Roger A. Simonson 345

Card system saves transcription
labor, vi ; its unlimited ex-
pansibility, 345 ; its most val-
uable feature, 347 ; scale of
costs shown by its use. 348 ;
its mechanical features, 351 ;

not in great favor with book
keepers, 371.

Cash Book, form 150 ; principal
and petty cash forms, 260.

Catalogue arranged on decimal

system 13, 272

Catalogue, assembling, page of,
275 ; how used, 276 ; how il-
lustrations are made, 276 ; its
number cast on work, 276.

Catalogue reference, form, 273 ;
illustrated, 274.

Changes in plant value forced by

competition and improvement 8

Check (metal), use of in paying
workmen, 133, 135 ; collected
by gate-keeper, 135.

Check board, window, and box,

two illustrations 134

Chicago Time Register, illustrated 391

Chronological filing of order-
received cards 264

Claim for over-time and half-time,

form 138

Classification of card-records.... 350

Clerical over-time money saved . . ",49

Clerks, list of 194

Coal consumed, ashes from 292

Collation of typical costs y'

Collective cost-record for each

production- card 8^.

Collective Production Order

System, Mr. Foote 's 16

Collective production-order, 12 ;
keeps record of work in pro-
gress, 31 ; a permanent and
accessible record, 32; the sim-
ple.st possible system of fac-
tory accounting, 35.

Collective value of card records. . 345

Color of cards in Gunn System. . . 295

Commercial accounting (Struth-

ers. Wells & Co. ) 146

Commercial instinct versus me-
chanical ingenuity 357

Commission sales settlement, 168;
statement, form, 169.

Comparison, its facility by Mr,
Foote's card system, 16 ; of
earnings on time-basis and on
piece-work, 309 ; of work-
men's efficiency, 309 ; of cost
records reveals points of
value, 348

Competition forces change in
plant-value, 8 ; demands im
proved machinery, 354.

INDEX.

Complete System for General
Iron Works, by R. K. Van

Doom S3

Completed order cards, how col-
lected 204

Completed order passes to sales

department 145

Comptograph, Felt & Tarrant's,

374; illustrated, 378.
Comptometer, Felt & Tarrant's,
374 ; illustratetl. 375, 377 ; its
operation, 376 ; its superiority
and general applicability, 379,
Computing machines, 370 ; not
generally favored by account-
ants, 371 ; their generic ad-
vantages, 372 : Felt & Tar-
rant's. 374. (See Calculating
Machines. )
Consignments, how inventoried. . 168

Constant expenses 49

Construction memorandum, form 2S5

Contractor customer's order... 142

Contract should be drawn up full

and accurate, 248 ; form, 249 ;

with general and detailed

specifications, 251.

Correlation of cost statistics 346

Cost of boiler-shop labor, form.. 12S
Cost of casting, cupola mixture,

labor, material, &c 205

Costs, scale of. shown for any

period 348

Cost-accounts, four forms ^^9-9^

Cost -accounting, inexpansible

methods disastrous 350

Cost-book, its importance 79

Cost-cards, form, 40 ; a current
and final record, 41 ; descrip-
tion of job and lalwr forms,
107, 108 ; an entire history of
material used, 294 ; filed in
classes, 309.

Cost-clerk and his duties

120, 195, 199, 296

Cost-detail, minute knowledge of

needed 83

Cost-keeper's desk and shelving,

illustrate<l 75-^77

Cost-keeping, its methods former-
ly kept secret, v ; gain from
knowledge of more than one
system, v ; wherein lies its
value, 16 ; its prime essential.
16 ; valuable in proportion to
minuteness of cietailcd infor-
mation. 83; a costly system,
example of. 361.
Cost per |>ound book, page fonn> . . ^

Cost-sheet «s department, of great

value 304

Counting and checking articles in

store-room 307

Coupon-cards 351

Cross-reference 346

Cupola, cost of mixture for, 205,

daily record, form 22S

Current sumnuiries 347

Daily depiirtment record, form ... 72
Dating clock stamp, illustrated ... 61

Daybook journal, form 289

Day-rate time-cards 308

Dead matter of stock record ex-
punged 348

Decay of once prosperous factories 7

Definitions 12, 200

De Laval Separator Co.'s system

of accounting, 52; its office

and works separated, 52 ; how

works are organized, 54.

Department cost sheets, form . 337-340

credit memorandum of stores,

form 223

requisition on stores 222

Depairtmental analysis 34S

Depreciation of plant value, 8 : of
buildings, 232 ; of tools, best
practice for obtaining, 310.
Desk and shelving, cost-keeper's,

illustrated 75-77

Detailed knowledge of cost, valu-
able 83

Detailed time-card, form, 42 ; how

used, 43.
Dewey decimal system of cata-
loging 13. 272

Dey Time Register, illustrate*! . . 395

Dies, at whose cost made 20

Die-room account 18

foreman of, his duties 34

Dilatory workmen, loss from com-
puted 367

Disadvantage of single merchan-
dise account 190

Disagreeing methods in disposing

of certain items 354

Disastrous consequences from in-

exi>ansiblc methods 350

Discounted notes, how accountetl 160
Distribution of sales-book, forms. i6t

sheets 306

of .shop pay-roll, form ' 209

Division of plant, as to its depart-
ments 293

' ^< >uble-entry accounting machine,
\Hij : nif^ts many re<|uirc-
• vU

INDEX

Drawings, 143 ; drawings, patterns
and special tools, at forced
sale, 358.

Drawing-room 296

account and expense 46

Duplicate cost cards, fonn 1 1 1

labor, clerical, avoided by card
system 350

Duplicate Work, simple system

for 37

Duplication and Triplication of
card records 35 1

Duration of human labor a meas-
ure of value 3, 4

Earnings on time-basis and on

piece-rate 309

Eco- Magneto Watchman's
Clock, 400; illustrated, 401.

Economical limit of card forms
■unfixed 38

Effect, largest possible should fol-
low every effort 370

Elliott & Hatch's Book Type-
writer, 405 ; illustrated, 406.

Emerson Time Stamp, illustrated 403

Employment of new men 324

Erroneous assumptions as to value 359

Error liable in computing and in
recording, 371 ; how error
may affect machines, 371.

Exchange of service the base of
all trade and industrial order,
2 ; possibilities of, 3.

Executive force 191

Expectation for the future 355

Expenditure, report form, 327 ;
indirect, 360.

Expense of factory apportioned,
18; as item in Tellefsen Sys-
tem, 43 ; percentages of for
shop and office, 49 ; whether
a given expense is chargeable
as loss or gain, 353.

Expense Account 353

Expense account divisions as time-
saving 197

how manager may reduce 197

olden and modern forms of . . . . 359

Expense card, form no

Expense percentages, tabulation

of 49

Facility of comparison by use of

card system 16

Factory, The 8

Factory may seem not a good to
mankind, i ; considered in
broadest relations to human
effort, 2 ; its importance, 6 ;
itself and manager everywhere

present, S ; treated as a trusted
servant, 53 ; its operations di-
vided into classes, 293 ; runs
a course of natural life, 362 ;
is a complicated and accurate-
ly-timed machine, 370.
accounting by ordinary book-
keeping, 9 ; systems of tend
to self-perfection, 38 ; books,
199; its mechanical aids, 363.
charges, 17 ; expenditure re-
port-card form, 327.
expense charges, how total is
made up, 18.

order, form 71

organization and accounting its
first step to, 10 ; tends to in-
creased detail, 38 ; and ac-
counting, 292.

practice, how it consists 7

production 57

records a necessity, 9 ; their

analysis 292

Facts requiring most detail in rec-
ord, 292 ; and are mOvSt diffi-
cult to secure, 292.
Felt & Tarrant mentioned, 374.

(See Comptometer.)
Filing cabinet and desk, illus-
trated 74-77

Final value of tools, least 314

Finished production record 308

Finished stores when regarded as
rough stores, 14; defined, 15;
keeper of, 57, 58 ; book. 78 ;
ledger, form, 224.

Finishing room, foreman of 35

Fixture account 200

Flat cost defined, 13 ; record form,
48 ; how enters total cost, 49 ;
how total flat cost obtained,

145.

Floating plant defined 200

Foote card system explained. . . . 16-36
Mr., his daily attention to pro-
duction order record 32-36

Forced sale of drawings, patterns,

and special tools 358

Forced sale values 359

Foreman and his functions, 17,34,
43. 55. 60, 68, 120, 135, 143,
144, 191, 206, 295, 295, 299,
305, 306, 311, 319, 330.
when authorized to issue prp-
duction orders to himself. . . . 299

Foremen of various departments . . 194
book of instructions to 277

Forging-room, foreman of, his

duties 34

INDEX

Forms of books, cards and sheets
shown herein : —

Active assets 193

Address card 316

niemoranduni 271

Billing for month card 265

Bills discounted, page form. . 162

payable, page form 149

receivable, page form 162

Boiler shop account 89-91

details 91

general production 92

labor-cost 1 28

steam-engine order 94

summary 93

Branch department inquiry., 130

Bushing card 46

Card register book 113

Card transfer book 115

Cash book 150

distribution of, card ... 263-264

principal and petty, cards. 260

Catalogue, assembling, page. 275

reference 273

Commission book 1 65

sales statement . 169

statement 169

Construction memorandum . . 285
Contract between railway and

signal companies 249

received, card 266

summary of its historv, card 270

Cost card ( Hyatt Co. ) .' 40

black and green 107, loS

Cost per-pound book 117

Credit memorandum 246

Cupola record, daily 228

Daybook journal, page 289

Department cost-sheet. . . .337-340
credit memorandum to stores 223

record, daily 72

requisition on stores 222

Detailed time-card 42

Duplicate cost-card in

Framings for the year 194

Kxpense card no

Factory expenditure report

card 327

Finished .stores ledger 224

Flat cost record book 48

Foundry pro<luction order. . . 103

report card 132

Freight distribution \xwV. ... 163

Fuel record book 229

Gas-«ngine production or-
der 98-100

Graphic exhibit of fuel con-
sumed 342

Handling, cost of 230

Forms of books, cards and sheets
shown herein — Continued : —

Incoming invoices ^67

Index lxx)k 23

Insi>ected and approved 1 26

Inventory 193

Jigs, dies and special tools

record 233

Key to distribution of vouch-
ers 236

Labor detail book 118

Ledger, page 148-290

Machine-shop general produc-
tion order loi

general production details

and summary. .... 102

Machines shipped, card 269

Machinery consigned, record

of 165

record of ..;... , 231

Material delivered, card 333

li.st. for signalling 257-258

memoranaum 285

received, card 332

returned, card 334

Memorandum relating to call-
ers 272

Net increase in wortli 193

Notice to order department . . 1 70

Order received card 267

Over-time and half-time claim 138

report 140

Packing list i;^2

Pattern card 109

record 233

Pay-roll 241

book 141

sheet 328

Permanent inventory card. . . 326

Piece-rate contract, card 67

Piece-work card 122

cost -card 325

pxiy-roll 243

rate-book 221

rei>ort 139

time-book 231

Plant and betterment order,

card 318

Plate order card 113

Poughkecpsie order ( Dc Laval ) 7 1

Prime cost record book 3l8

Protluction order cards. Foote

svstem 22, 25, 26

n\ lit Co 38

( .Miin system J17

Production-order for hori-
zontal tubular l>oilem . .
record book

INDEX.

Fomis of Ijooks, cards and sheets
shown herein — Continued :—

Troposal memorandum 259

to railway company ... 2S7, 2S8
Purchase distribution book.. 165

order 55. 33»

Purchasing agent's quotation

record, card 315

Ratios, statement of 192

Read y-for inspection cards ... 1 26

Ready-for shiomctit. 126

Reference card 27 1

Repair order 69

statement 68

Requisition on factory by N.

Y. office (De I^aval) 58

to purchase 214

Report card 59

stub-book 73

Roller production-order card. 47

Rough stores ledger 225

Sales-distribution book 163

•' Scattergood *' pay-roll 329

Shipping list 232

Shop order record book 80, Si

Smithy production-order.... 104

summary 105, 106

Standing order cost-sheet 336

Steam-engine summary 95-97

Stock work card 121

Stores-ledger card 335

memorandum 216

received record 226

rejected report 226

returned memorandum. . . . 227
Sub-production order card ... 24

Summary repair card 70

Superintendent's order on
storekeeper 215

requisition on factory 217

Suspense ledger 171

Tank-builder's daily report. . 153

weekly report 152

Tenders submitted card 266

Time-and-pay envelope 64

Time-book 65, 66

Time-cards, five forms. . .320, 323
Time-for-two- weeks book .... 220

Timesheet 137

Tool Card 313

Tower memorandum 2S6

Transfer card 119

Treasurer s daily report card . 265

statement 261-262

Unproductive labor card 21

Valuation record of tools.card 313
Voucher 156, 2.^4

address slip 245

book 1 58

Forms of books, cards and sheets
shown herein — Continued : —

on back of pay-roll 242

Wages record book 220

Work card 56

W^orkman's gate record 136

record card 324

time card 44, 219

Forms, how stored for reference,
75 ; how generated, 84 ; when
correct and satisfactory should
be printed, 198 ; list of, used
in Hansel System, 211 ; to
have enough a cardinal point,
291; list of, for small estab-
lishment, 334.

Foundry, production-order, 103 ;
report card, 132.

Forwarding of printed matter. . . . 269

Freight distribution book 163

Frick's automatic programme
clock, 398 ; illustrated, 399.

Gate record-form 136

Gatekeeper, his duties 135

General expense division 190

ledger, 146 ; form of page, 148.
order for boiler-shop products . . 92
supplies, group items arranged
alphabetically 304

General System for riedium-
Sized Works 52

Glossary of terms used in Hansel

system 200

Gold, why an ounce worth a ton

of iron ore 4

Goods furnished to workmen, 142;
returned, 190.

Good will, to insure its continu-
ance, 247 ; good will and cus-
tom, 358.

Grant, of Cambridge, his calculat-
ing machine 373

Graphic exhibit of fuel consump-
tion, 342 ; more than one
shown by same card, 343.

Graphic tables, their high value,
344 ; show strikingly various
relations, 344.

Green cost-cards 85, 107

Group-titles in index book 24

Guide cards 351

Gunn, James Newton, mentioned

vi, 292

his system of factory account-
ing 292-344

Half-time, claim lor, form, 138 ;
explained, 142.

Handling, cost of, form 230

INDEX.

Hansel, Charles, mentionetl, 196 ;
his general scheme of ac-
counting, 196.
Human labor, industrially speak-
ing 3

Hyatt Roller- Bearing Co. 's System 37
Identical transactions, variations

in their cost 348

Idle tools a charge differently es-
timated 19

Importance of precise form of

blanks 84

Improved machinery demanded

by competition 354

Increase in worth-form 193

Index book, pap^e 23 23

letters, use of I47

Indirect operations, how classified 294

Individual reference 348

Initial records, their accuracy es-
sential 292

Inquiry, branch department-form 130

Inspected and approved-form 126

Instructions for foremen, book of,
277 ; returned to superin-
tendent and filed, 278.
Intermittent production orders. . . 116
Inventory, cannot be made from
card records, 33 ; form of, 193;
made yearly and quarterly,
196 ; how made, 276 ; per-
manent, 307 ; card form of
permanent, 326 ; perpetual,

347-

Invoice book 79

Invoices checked and entered on
voucher book, 151 ; incoming-
form, 166, 167.

Item number 97

Items for transfer book 166

Itemization a requisite in factory

accounting 359

Jigs and templets, 201 ; and spe-
cial tools-record

Job numbers

Journal 151

Key to distribution of vouchers,
196, 236 ; made expansive,
272.
Labor, human, defined, 3 ; mental
not measured by time occu-
pied. 4 ; sum and total of
man's life, 6 ; every item of,
accounted for, 303.

Labor detail book 118

exchanges, how effected 6

management, meaning of the

best 6

paid and payable accounts . 1 1 ?

record and pay-roll 133

Lathe order, example of 354-35^

Ledger folio, 76 ; form, 146.

Letter-files, Amberg's 76

Let-well-alone is to fall behind ... 8
Limit of possible improvement . . 354
List of forms for 15 to 40 men em-
ployed 334

Loss from dilatory workmen com-
puted '. 367

Machine calculator, what possibil-
ities of its error, 371 ; its
advantages over mental work,
372 ; slow in unskilful hands,
372.

details, schedule of 295

product, best form of 354

shop production orders for
steam-engines, 94-97 ; for gas-
engines, 98-100 ; general pro-
duction order form, loi, 102.
tools, record of, kept on cards

and classified 309

Machinery consigned, record form 165

record, book form 231

Man in broad view and in com-
mercial view >

Management and executive force 191
Manager, how he may reduce ex-
pense account 197

Managing partner 191

Manufacturer and merchant, how

they affect values 6

as also merchant 7

Manufactures and Commerce. . 2

Manufacturing account 18

Material, left over, 205 ; for sig-
nalling, form, 257 ; facts re-
lating to most valuable, 292.
cards, how sorted for entry in

analysis sheets 306

delivered, 332 ; form, 333.

received, form 332

requisition card 304, 305

returned card-form 334

Measure of vahie 3

Hechanical Aids to Factory

Accounting 363

features in card systems 351

ingenuity versus commercial in-
stinct ' 357

recorder of workmen's time. . . 50
time-record little liable to error 364

time-recorder 50, 31)6, 387, 389

versus manual oi)erations 371

Memory fallible 9

Minute knowle<lge of cost -details

Vtlt

INDEX,

Iklisunderstandings avoided by a

form of contract 247

Morse's Employers' Time Regis-
ter, 392 ; illustrated, 593,
^lulta-programme clock, Prick's 398
^lystery abhorrent to manager's

instinct 197

Nation which manages labor best

must rule the earth 6

National Electric Watchman's

Clock, illustrated 404

Switch and Signal Co. , its cost-
keeping system, 196; its fac-
tory operations and clerical
force, 199 ; its general system
of accounting, 202 ; its forms
shown and explained, 209-290;
its instructions to foremen, 277

Necessity for the Factory i

New Creations 354

factory, its actual position 355

men, employed and old men re-
employed 324

tools replacing old ones and how

accounted 43

Nomenclature uniform through-
out factory 295

Non-productive labor statement,

form 210

Notes and acceptances 155

paid and notes renewed 159, 160

Notice to order department, form 170

Numbering machine, Bates' 65

of cards 112

system, Gunn's 300

Numbers, accounts specified by.. 196
assigned in Gunn system to
standing orders, repairs, de-
])reciation and care of plant,
supervision of indirect labor
and material, standing orders

production 301-303

assigned to workmen. . 133, 204, 294

Numeric system 350

Obsolete and worn-out tools 314

Odhner, his calculating machine 373

OflSce charges 17

Officials, list of, and their duties

82,311

OfTset, none for workmen's tardi-
ness 366

Operation of cost-system 142

Order, amount of time and ma-
terial chargeable to each 203

department, notice to, form. ... 170
for work may be recorded on

cards 11

Orders in progress, ready-refer-
ence list, 123; daily statement

of their condition 267

Organization of plant, 296 ; of

stores-room, 312.
Over-time and half-time, claim-
form, 138 ; report-form, 140.

money (clerical) saved 349

Packing list, form 172

Pascal. Blaise, mentioned, and his

calculating machine 372

Pattern card -form, 109 ; record
book, 233.
-shop account inventoried as an

asset 46

-storage room, classified 276

Payments between pay-days 142

Pay-roll accounts with banks. . . 142

book, page 141

form 241, 328, 329

items do not depend on a single

entry 142

voucher described 245

Per diem summaries tabulated

from cards 347

Permanent inventory, 307 ; form,
326.

investment 300

Perpetual inventory 347

Piece price of production shown

by card record 22

rates, 66 ; contract form, 67 ;
facts warranting their altera-
tion, 308.
-work book, 79 ; card-form, 122 ;
report-form, 139 ; rate-book
and time-book, 221 ; pay-roll,
243 ; time-cards, 308 ; cost-
cards, 325.

Place for everything 284, 290

Plant, what it incfudes, 7 ; its
value affected by competition
and improvement, 7 ; its de-
preciation by use, 8 ; slightly
lessened efficiency dooms it to
extinction, 7, 8 ; its proper
division into departments,

293-
orders, 297-299 ; how numbered,

300.
and betterment order-form 318

Plate-order cards-form 112

Poughkeepsie order-form (De La-
val) 71

Precise form of any blank impor-
tant 84

Prentice synchronizing system,

illustrated 396

Prime-cost, book, 79 ; term de-
fined, 201 ; record of -form,
218 ; last prime-cost, 222.

INDEX.

Primitive manner of life, return to i
Printed forms, their importance

and economy 198

Privacy of card accounting 41

Production order, 11 ; defined, 12 ;
with whom it originates, 23,
25. 39. 55, 143. 296, 297 : how
pigeon-holed, 30 ; pigeon-
holing illustrated, 32 ; in-
spected daily, 32, 36 ; how
filled out, 42 ; entered and
recorde<l, 43 ; made in carbon
duplicate, 29S ; sent to chief
draughtsman, 43, 298 ; excep-
tional issuing, a case of, 299;
issued to departments separ-
ately, 305 ; filed in "family "
groups. 305.
order blanks, how kept and is-
sued 22

forms, 22, 25, 26, 87, 217, 317,
record book, 85 ; form, 86.
Productive and unproductive la-
bor, how accounted 20

labor, facts relating to most

valuable 292

Programme clock is adapted to
factory equipment, 369 ; auto-
matically varies order of day,
370 ; performs various func-
tions, 370 , Self-Winding
Clock Co.'s, 397; Prick's,
398 ; same illustrated, 3^.
Progressive record, transcription

of 349

Proposal memorandum, form .... 259

to railway company, form ..287,288
Punches, their use by officials. ... 312

Punching of time-cards ....... 223. 319

Punctual arrival at factory not a

harsh requirement 367

Purchase distribution book 165

order-form 55, 331

Purchasing agent's quotation rec-
ord 315

Questions for shop managers v

Quick estimates 114

Rapid consultation of completed

record 351

Ratios, statement of, form 192

Rcady-for-inspcction, form 126

shipment, form 1 26

Record of order may be made on

cards II

cards, by whom filled, 292 ;
workmen's, 324.

of plant 309

Re-employment of men 324

Reference slips, how used and

cabinet for their storage 124

Reference card, form 271

catalogue, sample page 273

Registermg Accountant, Bur-
roughs , 394

Related records, cards bearing 305

Relation between commerci^ and
factory accounts supposed .... 52

Renewal of promissory notes 160

Repair accounting effectively dealt

with 68

Repair order form 69

statement form . .-. 68

of tools, how accounted 43

Repairs and expenses, how ac-
counted 43, 45

how made and accounted 67

Report card form 59

of finished stores form 73

Requisition of New York office on
factory, 58; for purchase card,

214. 330.

Residue in factory on delivery' of

product r. . . 354

Results gained by Foote card-
system 35

Rochester Card Recorder, illus-
trated 386

Roller production order form 47

Rough stores defined, 15 ; mem-
orandum book, 23 ; keeper,
his duties, 35 ; clerk, 61 ;
ledger, 225.

Sample boards, 21, 27, 29 ; illus-
trated, 27-30.

Saving of clerical labor and stor-
age room by use of cards .... 11

Scale of costs shown bycanl system 348

Scheutz, Edward, of Stockholm,

his calculator 373

Scrap and scrap value 202

Secrecy of olden cost-keeping
methods v

Self-indexing of card system 349

re^stry of workmen's arrival. . 363
Winding Clock Co. 's programme
clock, 397 ; its synchronizing
system, doo.

Separation of factory from oflScc

in card-accounting 33i 5^

of labor and material in ac-
counts 190

Shipping clerk, his functions. . . .

..17.34. 195

and quotation clerk, his func-
tions 199

list form 232

orders, how made out and filed 310

INDEX,

Shop cost, what it includes 49

managers, questions for v

order rack, illustrated, 60; book,
79 ; record book form, 80, 81.
scrap, boy sorting, example, ... 197

telephone system 297

Sinionson, Roger A., on card sys-
tem of accounting 345

Simple System lor Duplicate

Work 37

Simplicity and economy of Mr.

Foote's card system 35. 36

and accuracy of Mr. Tellefsen's

system 49-5 '

Slide-rule, why not generally used 374
Small establishment, list of forms

for, recommended 334

Smith production orders, forms 104, 106

Specification book 41

Standing order, 300 ; numbers,
301 ; with its cost-sheet per-
petual, 304 ; cost-sheet form,
336.

Statement of ratios 192

Stock defined 15

shortage 297

-work card, description and

form 1 20, 121

Store-keeper 203, 296

Stores, their condition shown .... 21.S
clerk. 304, 307 ; ledger, 305 ;
card, what it shows, 305 ;
card form, 335.

memorandum form 216

received record form 226

received and disbursed ledger . . 203

rejected record 226

returned, memorandum form . . 227
room record, its accuracy, 307 ;
its organization, 312.
Strict regulations versus benevo-
lent policy 365

Strieby & Foote, Newark, N. J.,
mentioned, 16 ; their factory,
how organized, 17.
Struthers, Wells & Co., Warren,
Penn., their work, how or-
ganized, 83 ; list of their
forms used, 85 ; forms shown
and explained, 86-194 ; their
revolving cabinet illustrated,
1 24 ; list of forms complete,
127; operation of their cost
system, 142 ; their commer-
, cial accounting, 146 ; fore-
men, clerks, &c., 194.

Stub duplicate of shop order 58

Subordinate cards, how disposed

«-^ 31.35

Sub-production order

12,35, 143, 298, 316

form 24

Summary repair card form 70

Superintendent, his functions. . . ,

his order on storekeeper, 215 ;
his requisition on factory, 317.
Supplementary production order 25

Supply clerk 1^4

Suspense ledger, form, 171 ; de-
scribed, 173; example, 174.

Symbols effect labor-saving 13

Synchronization of time-pieces. . . 369
Svnchronizing svsteni, Prentice's,
396 ; Self - Winding Clock
Co.'s, 400.
Synopsis of Foote system of cost-
keeping. 33 ; of Tellefsen sys-
tem, 51.
Synoptic entry on single line. ... 24

Tab cards 350

Tabulation of expense percentages 49

Tally-sheets 203. 230

Tank-builder's weekly report,
form, 152 ; daily report, form,
153. 154-
Tate, his improvement of Thomas

calculating machine 373

Tellefsen, T. J., mentioned, 37;
his theorem as to new tools,
43 ; accuracy of his system,
49 ; system adaptable to small
number of workmen, 51.
Tendency to increased detail in

time divisions 38

Thomas, his calculating machine 373

Thorne, Oakley, mentioned 196

Time, how computed and record-
ed, 57 ; distribution of, 64 ;
uniform standard of factory
time, 369.
book, workman 'sand foreman's,

20 ; form of, 65, 66.
card (detailed), form, 42; how
filled, 50 ; workman's form,
5-niinute divisions, 219 ; spe-
cially devised, 294 ; work-
man's, how used, 319 ; forms
shown, 320-323.
card and pay-envelope rack,

illustrated 62, 63

clocks for workmen 363

for two weeks, form of book . . . 220
recorder, 50, 306 ; Bundy's, 387 ;

same illustrated, 389.
saving by expense division and

printed forms 197

sheet, form 137

INDEX.

stamp, 57, 82 ; Emerson's, illus-
trated 403

takers or clerks, liable to error 50

vouchers 155

Tool card forai 313

expanse charge 18

maker's pay-roll, how made. ... 35

room supplies 20

Tools, new, how accounted, 43 ;
Mr. Tellefsen's theorem as to.. 43
obsolete, as expenses or as assets 45
when they become obsolete. . . . 314

Total cost, definition 13

Tower memorandum 286

Transcription labor saved by card

system vi

Transfer book, items for 166

Transposition of progressive rec-
ord 349

Typical costs, collation of 346

Uncertain value of manufacturing

plant 8

Unifonn clock-readings in factory 369
Uniformity of nomenclature

throughout factory 295

Uniqueness of each plant 352

Unity of item entry 345

Unproductive labor cards, form.. 21
Valuation record of tools, form ... 313
Value fixed by comparison, v ;
must exist before exchange-
able, 2 ; its essential charac-
teristic, 3 ; in some things not
exchangeable, 3 ; possibility
of, 3 ; measured by duration
of labor, 3 ; of mental labor
not measure<i by time occu-

f)ied, 4 ; actual, dependent on
abor, 5 ; of average man, 5 ;
how affected by manufacturer
and merchant, 6 ; of a system
dependent on judgment in is-
8umg cards, 145 ; of factory
form lies in fullness and com-
pleteness, 278 ; least final of
tools, 314.

Values, erroneous assumptions as

to 359

Van Doom, R. F., on Complete
System for General Iron
Works 83

Variations between book inven-
torv and actual count, 277 ;
of balance on ledger record,

308 ; in cost of identical trans-
actions, 348 ; of time (clocks),
to what they lead, 369.
Verbal orders, their uncertainty . , 9
Vitalizing or vivifying, blank or-
der forms 23, 25. 143

Vouchers, 151, 164; printed and
copied into tissue-book, 155 ;
entered in cash-book. 155 ;
forms, 1 56 ; key to their dis-
tribution, 196 ; voucher or bill
form 234 ; at back of pay-roll,
242 ; key to distribution made
expansive, 272.

Voucher address-slip form 245

book form 158

Wages record, form of book 220

Watchman's clock, Eco-Magnetic,
400 , same illustrated, 401 ;
National Electric, illustrated,
404.
Time Detector, Acme, illustrated 402

Time-stamp. Emerson's 403

Webb's Adder 385

Witnesses do not agree 9

Words ' ' shop, " " mill. " * * fac-
tory, ' ' discriminated 12

Work-card form, 56 ; filing cab-
inet, illustrated, 74; how filed
and preserved, 75 ; made up
in books, 75.
man. time cards for, 44, 320-323;
his own account of his time, 50;
passing at gate, 135; form of
his gate-record, 136 ; his debit
and credit account, 141 ; fills
his own time-card. 319 ; form
of his record-cards, 324 ; his
arrival self- registered. ^^63 ;
"adjustment" of his time,
364 ; strictness in keeping his
time-record, 365.
Workman's Time Recorders. . . 386
Workmen must form large jwrt of
population, i ; when not pos-
sible to record their own time
and work, 293.
Work -orders, job ticket, work-
slir>, equivalents of production

oraer 12

proilucing tools, breakage and
repairs 18

UNIVERSITY OF TORONTO
LIBRARY

Acme Library Card Pocket

Under Tjit. " Krf. Indei Kile."
Made by LIBRARY BUREAU

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Full text of "The complete cost-keeper : some original systems of shop-keeping or factory accounting, together with An exposition of the advantages of account keeping by means of cards instead of books, and a description of various mechanical aids to factory accounting"

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